The Relationship Between Financial Ratios and Rate of ReturnRatio on Common Stock Investments in the Capital and Securities Business Sector on the Stock Exchange of Thailand
Article Sidebar
Main Article Content
Abstract
The objective of this research study was to investigate the relationship between financial ratios and rate of return ratio on common stock investments in the capital and securities business sector on the Stock Exchange of Thailand. The study collected secondary data and analyzed financial ratios from annual financial statements from years 2018 to 2022. Quantitative research methods were employed, including descriptive and inferential statistics, as well as multiple regression analysis, to analyze the data. The results of the research revealed that the panel data relationship analysis using Pool OLS at a significance level (p-value<0.05) found that none of the financial ratios were related to the rate of return ratio. Furthermore, the F-test statistics for the Pool PLS analysis indicated that the F-test value was less than its critical value, leading to the acceptance of the null-hypothesis, which stated that none of the financial ratios were related to the rate of return ratio.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
ลิขสิทธิ์ของบทความ
ผลงานที่ได้รับการตีพิมพ์ถือเป็นลิขสิทธิ์ของมหาวิทยาลัยหอการค้าไทย ห้ามมิให้นำเนื้อหา ทัศนะ หรือข้อคิดเห็นใด ๆ ของผลงานไปทำซ้ำ ดัดแปลง หรือเผยแพร่ ไม่ว่าทั้งหมดหรือบางส่วนโดยไม่ได้รับอนุญาตเป็นลายลักษณ์อักษรจากมหาวิทยาลัยหอการค้าไทยก่อน
References
Alswalmeh, A. A. A., Dali, N. R. S. B. M., & Alta’ani, A. Z. (2021). The effects of accounting and market indicators towards stock return of Amman Stock Exchange index constituents.Journal of Economics, Finance and Management Studies, 4(10), 1926-1936. https://doi.org/10.47191/jefms/v4-i10-15
Atmariani, A. A. R., & Agustia, D. (2024). Return on assets, return on equity, earnings per share, dividend yield, and book-to-market ratio’s effects on stock return. SOSIOHUMANIORA: Jurnal Ilmiah Ilmu Sosial Dan Humaniora, 10(1), 30–45. https://doi.org/10.30738/sosio.v10i1.15870
Banerjee, A. (2019). Predicting stock return of UAE listed companies using financial ratios. Accounting and Finance Research, 8(2), 214-225. https://doi.org/10.5430/afr.v8n2p214
Bloomenthal, A. (2024, July 26). Financial ratio analysis: Definition, types, examples, and how to use. Investopedia, https://www.investopedia.com/terms/r/ratioanalysis.asp
Chen, J. (2024, April 1). Prospect theory: What it is and how it works, with examples. Investopedia, https://www.investopedia.com/terms/p/prospecttheory.asp
Downey, L. (2024, October 3). Efficient market hypothesis (EMH): Definition and critique. Investopedia, https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp
Fernando, J. (2024a, July 18). Return on equity (ROE) calculation and what it means. Investopedia, https://www.investopedia.com/terms/r/returnonequity.asp
Fernando, J. (2024b, September 18). Earnings per share (EPS): What it means and how to calculate it. Investopedia, https://www.investopedia.com/terms/e/eps.asp
Hayes, A. (2022, September 26). Debt signaling: What it is, how it works, example. Investopedia, https://www.investopedia.com/terms/d/debtsignaling.asp
Hayes, A. (2024, August 20). Behavioral finance: Biases, emotions and financial. Investopedia, https://www.investopedia.com/terms/b/behavioralfinance.asp
The Investopedia Team. (2024, September 28). What is considered a good debt-to-equity ratio?. https://www.investopedia.com/ask/answers/040915/what-considered-good-net-debttoequity-ratio.asp
Kenton, W. (2024, July 20). Rate of return (ROR): Meaning, formula, and examples. Investopedia. https://www.investopedia.com/terms/r/rateofreturn.asp
Kopp, C. M. (2024, September 30). What is agency theory?. Investopedia, https://www.investopedia.com/terms/a/agencytheory.asp
Malchev, B. (2023, December 15). Financial performance indicators and stock returns: A decade-long analysis of MBI10 firms in North Macedonia. In Proceedings of the 4th international conference economic and business trends shaping the future. https://doi.org/10.47063/EBTSF.2023.0008
Murphy, C. B. (2024, June 1). What is net profit margin? Formula and examples. Investopedia. https://www.investopedia.com/terms/n/net_margin.asp
Şanlı, Ö. (2024). Examining the relationship between financial ratios and stock returns: An application on BIST 30 index. Journal of Applied Microeconometrics (JAME), 4(1), 1–11. https://doi.org/10.53753/jame.2424