Oil price fluctuations and its impact on the financial performance of major economic sectors in Malaysia

Zakaria & Shamsuddin, 2017) but not analysing the issue of the financial performance, this research will identify the influence based on financial ratio trends. In total data from 125 companies in Malaysia was collected and separated into 14 key ratios and allocated under the specific financial performance for further evaluation. The sampling method for the 125 companies followed the non-probability convenience sampling method (Saunders, Lewis and Thornhill, 2009). The collected data was afterwards analysed by using the SPSS software for performing validity, correlation and regression analysis. The results were evaluated and compared to earlier researches. The results were not as expected and contradicting with earlier researches as only the significant influence on the financial leverage of the oil & gas sector was identified. Resulting that the expected result of the research are not achieved. Other researchers were able to identify significant influences like Faff and Brailsford (1999) identified the influence on different economic sectors in Australia or Shaari, Pei and Rahim (2013) and Hanson, Robinson and Schluterin (1996) who identified the negative influence for the agriculture sector. Concerning the contradicting results with earlier researches it is recommended to perform further researches on the same topic to explore possible influence of oil price fluctuations on the financial performance of different sectors in the Malaysian economy