The Effect of Cash Flows on Net Profits and Future Profits of Companies Listed on the Stock Exchange of Thailand Service Industry Group

Abstract

          The objectives of this research are studying The Effect of Cash Flows on Net Profits and Future Profits of Companies Listed on The Stock Exchange of Thailand Service Industry Group by collecting 3 consecutive years data within 2018 – 2020 with 107 companies. Data were analyzed by using descriptive statistics in order to describe the general information of data collected and to analyze the correlation coefficient. That was to see the relationship between independent variables and multiple regression analysis. The objective of this analysis was to test the research hypothesis in order to see the effect of the independent variables on the dependent variables in the hypothesis which measured by net profits and future profits.
          The research result showed that cash flow from operating activities to total assets had a positive effect on net profits and future profits with statistical significance level at 0.01 and 0.05 (respectively). Nonetheless, cash flow from financing activities to shareholders' equity had a negative effect on net profits with statistical significance level at 0.01 while future profits were not affected. However, cash flow from operating activities to total liabilities, cash flow from operating activities to shareholders' equity, cash flow from investing activities in 3 areas and cash flow from financing activities to total assets, cash flow from financing activities to total liabilities did not have an effect on net profits and future profits.