The Relationship Between Capital Structure and Profitability of Listed Companies in the Stock Exchange of Thailand
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Abstract
The objective of this research was to study the relationship between capital structure and profitability of companies listed on the Stock Exchange of Thailand. It was quantitative research. The sample groups used in the study were companies listed on the Stock Exchange of Thailand, and all groups of the SET 50 index except for financial institutions such as commercial banks. Finance and Securities Group and insurance and life insurance companies, However, the sample used must have complete and continuous information. From the period used in the study, 2018 to 2020, a total of 87 samples were collected over 3 years. The instrument used in the collection was information on the capital structure, namely the debt-to-asset ratio, the debt-to-equity ratio, and profitability which collects information from the annual report and the annual list of each company’s collection of information on the website of the securities and exchange commission and research documents related to the capital structure and profitability of listed companies on the Stock Exchange of Thailand. Data were analyzed by descriptive statistical analysis and inferential statistical analysis. The results of the research found that the capital structure is related to the profitability of companies listed on the Stock Exchange of Thailand.
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