Foreign Investment and Firm’s Performance of Sharia Compliance: A Comparative Study of Indonesia and Malaysia

Abstract

Foreign investment can enhance the global business because it exposes the firm with new markets and marketing channels, access to new technology, products, skills and financing. Foreign investment is important to investors in developed areas who provide funding and expertise to smaller companies in emerging markets to expand and increase international sales. Hence, this article determines the relationship of foreign investment to the performance. Performance is measured by return on assets (ROA), return on equity (ROE), net profit margin (NPM) and Tobin’s Q. The analyses indicate that there is no significant influence between foreign investments and the performance.


 


 


Keywords: foreign investment, performance

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