DETERMINANTS OF CAPITAL STRUCTURE OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND IN SET100 INDEX
Keywords:
Capital Structure, Long-term Debt, Stock Exchange of ThailandAbstract
The purpose of this research is to study the proportion of the capital structure, the monetary factors that influence the capital structure, and other factor that affect the capital structure of the registered companies in the Stock Exchange of Thailand. The group of 207 samples used in the study is the listed companies in the Stock Exchange of Thailand in SET 100 Index, excluding 69 companies from the financial business industry, from 2016 to 2018, by using data from the annual financial statements. The statistics used for data analysis includes mean, standard deviation, the calculation of the Pearson product moment correlation coefficient, and multiple regression analysis.
The result of this research illustrates that the listed companies in the Stock Exchange of Thailand in SET 100 Index during 2016 - 2018, characterise the proportion of capital structure caused by long-term debt at an average of 34.38 percent. Factors like asset structure, business risk, profitability, financial distress, dividend payment and growth opportunities have no effect on long-term debt at the 0.05 level of significance. However, liquidity and free cash flow influence negative on the level of long-term debt. In addition, non-debt tax shields show a positive effect on the level of long-term debt at the 0.05 level of significance.
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