Modeling Retail Investor Confidence in The Stock Exchange of Thailand
Article Sidebar
Main Article Content
Abstract
The objectives of this research were to study factors influencing retail investor confidence in Stock Exchange of Thailand, and to construct a model of retail investor confidence in Stock Exchange of Thailand (SET). The research methodology consisted of two phases. Phase I was studying factors influencing retail investor confidence in Stock Exchange of Thailand through semi-structured in-depth interviews with main informants: SET administrators, administrators of securities, major investors, retail investors and academics. The collected data were then used in constructing a questionnaire; the target population were 340 investors participating in SET seminars in Bangkok and other provinces, the ratio of which calculated with parameter value of 20:1; and the statistics used in analyzing data were Structural Equation Modeling : SEM using LISREL. Phase II was constructing a model of retail investor confidence in SET by synthesizing Phase I study results in creating the model. Findings reveal the following:
1. The factors influencing retail investor confidence in SET were found in a descending order of coefficient values as follows: rate of return (0.88), risk (0.84), regulations of the Stock Exchange of Thailand (0.78) and corporate governance (0.42). These factors were found to have significant influence on SET retail investor confidence at the .01 level of statistical significance.
2. Modeling of SET retail investor confidence consists of rate of return, risk, regulations of the Stock Exchange of Thailand, and corporate governance.
Article Details
1. All articles undergo a thorough with at least three reviewers evaluating their suitability within the respective field of study, during the double-blind review.
2. The views expressed by individual authors do not represent the official views of the Editorial Boards of RMUJ: The author of each articie is responsible for all its contents.
3. The Editorial Boards do not reserve the copyrights. but proper citations need to be made.
References
Phannapa Thuvanimitrkul. (2012). Business Finance. 6th Edition. Bnagkok : Thammasart University.
Ratchanee Rungsrirattanawong. (2010). Risk Factors Affecting SET50. Bangkok : University of the Thai Chamber of Commerce
Silapaporn Srijanpetch. (2012). Good Governance Principles. Business Administration Journal, Faculty of Commerce and Accountancy.
The Stock Exchange of Thailand. (2015d) Good Governance Promotion in the Registered Companies. Thammasart University. 32 (123), July-September, 2-4.
Gompers, P. (2003). Corporate Government and Equity Price. The Quarterly Journal of Economics, 118(1), 107-156.
Jirat Sangkaew. (2006). “Thailand Equities Instrument Market” Naianya Khanthawit and Suluck Patthammas (Editor), Financial Market Mechanism in Thai Economic System, 324-378. Bangkok: Thailand Equities Instrument Market.
Infogination Co., Ltd. (2016b). Advantages of Registering in The Stock Exchange of Thailand. Retrieve from http://www.incquity.com/articles/grow-your-biz/ipo-benefit.
Supakorn Sunthornkij and Phophanit Phumraphan. (2006). “Thailand Equities Instrument Market” Naianya Khanthawit and Suluck Patthammas (Editor), Financial Market Mechanism in Thai Economic System. Bangkok : The Stock Exchange of Thailand
Kalapraphruek Phiwthongngam and Worawan Chanduaywit. (2013). Financial System and Financial Market Structure” in Thailand Securities Institute. Financial Market and Securities Investment, 1-72, Bangkok : The Stock Exchange of Thailand.
Nongluck Wiratchai. (1999). LISREL model: Statistical Analysis for Resarch (3rd Edition). Bangkok : Chulalongkorn University Printing House.
