An Empirical Analysis of the Relationship Between Financial Ratios and Dividend Yield of Hospital Sector Listed Companies in the Stock Exchange of Thailand: A Comparative Study of the Pre- and Post-COVID-19 Periods

Abstract

This article aimed to study (1) financial ratios calculated and analyzed from the hospital’s financial statements in relation to dividend yield in order to evaluate the returns on investment in the hospital business; and (2) the relationship between financial ratios and dividend yields of hospitals during the pre- to post-COVID-19 eras. The sample consisted of all 22 hospital companies listed on the Stock Exchange of Thailand (SET). This study employed a quantitative research design. The data were collected from all 22 companies in the medical sector listed on the Stock Exchange of Thailand (SET) during the period 2017–2025, covering a total of nine years. Data were analyzed using descriptive statistics and multiple regression analysis. The results of the study found that the hospital business experienced high growth during the COVID-19 pandemic before stabilizing at normal levels, followed by increased volatility in the post-pandemic period. This volatility was driven by intense competition and a high fixed-cost structure. Overall liquidity remained strong, although variations were observed across companies. Meanwhile, asset utilization remained low, and capital structures were stable, despite some companies increasing leverage to fund investment expansion. The business continuously faced a high-cost structure, rendering profitability highly sensitive to fluctuations in revenue, particularly during periods of revenue deceleration. Regarding dividend payouts, large-cap companies demonstrated greater consistency, whereas small- and medium-sized enterprises frequently reduced distributions to preserve liquidity. Furthermore, regression analysis revealed that (R² = 0.346, Adjusted R² = 0.242, p-value < 0.10), ROA, NPM, and A/E exhibited positive relationships with dividend payouts, whereas CR, D/A, and OPM demonstrated negative relationships.