The influence of financial ratios to stock price changes of listed companies on the stock exchange of Thailand in the SETWB index
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Abstract
The objective of this study was to examine financial ratios that affected stock price changes of listed companies on the Stock Exchange of Thailand in the SETWB index. The financial ratios used in this study consisted of current ratio, total asset turnover, debt-to-equity ratio, return on investment, and price-to-book value ratio. The population and sample were 25 companies listed on the Stock Exchange of Thailand in the SETWB index that met the criteria according to the time frame studied in 3 cases: 1) The situation before of the coronavirus disease 2019 (COVID-19) pandemic, 2) the situation during of the COVID-19 pandemic, both of which employed the same amount of time in analysis, namely 6 quarters, totaling 150 samples per case, and 3) the overall situation 22 quarters, totaling 550 samples. Secondary quantitative data was analyzed using a multiple regression model.
The results showed that return on investment was the only factor that had a statistically significant effect on the rate of change in the stock prices of the SETWB index companies at the level. 0.01 in all three cases. It can describe the fluctuation of the stock price changes as much as 83.9, 86.1 and 86.2 for each case, respectively. The current study reflects that return on investment is one of the important financial ratios to the implementation of investor decisions, which is rarely uses in the study of such influence in Thailand research.
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