Stock selection criteria during the bull run in the Malaysian stock market 1988-1996

Abstract

The objective of this paper is to identify the significant fundamental attributes of consistently outperforming stocks in Malaysia during 1988 to J 996 bull run within the Kuala Lumpur Composite Index. The results suggest that a consistent outperformer tended to be a high earnings growth, small to medium (below RM One billion) market capitalization company with net cash or low gearing in its balance sheet. The results also suggest that the Malaysian stock market was not efficient and outperforming investors adopted a hybrid growth and value investment strategy during the period under study.