Consumer product firms in Malaysia must diversify to boost performance.
The article examines how the way companies raise money and manage their assets affects their performance. They looked at 120 consumer product companies in Malaysia from 2013 to 2017. The study found that the more debt a company has compared to its assets, the lower its performance tends to be. Companies with more assets in relation to their equity also tend to perform worse. Having more cash on hand and tangible assets can also hurt performance. On the other hand, larger companies tend to perform better. To do well, consumer product companies should invest in different areas and markets. Future research could look at how external factors like taxes and inflation impact performance.