Proceedings of the 51st International Academic Conference, Vienna

FACTORS AFFECTING STOCK PRICE: THE CASE OF THAILAND STOCK EXCHANGE SET 100 INDEX

THARINEE PONGSUPATT, APICHAT PONGSUPATT

Abstract:

A number of researches have been examined the volatility of stock price in capital market for quite some time. Many studies have been undertaken to explore determinants influencing fluctuation in stock prices in different markets and dissimilar conclusions are found. The purpose of this study attempts to determine the factors that cause stock prices to increase or decrease. Eight explanatory variables including dividend yield, growth, leverage, return on equity, bookvalue per share, earnings per share, price-earning (P/E) ratio, and net profit after tax have been selected, while one controllable variable is set as firm-size. Completed financial data of577 samples from companies listed in Thailand Stock Exchange (TSE) SET 100 Index, excluding financing and banking sector, during the period of 2009-2018 are analyzed. Multiple regression model with statistic testing at the significant level 0.05 has been implemented. The results indicate strongly positive significant association between return on equity, earnings per share, price earnings and net profit after tax on firm’s stock price. Whereas dividend yield is the only factor that has negatively relationship with stock price. This model is supported with high R2 of 0.88. The findings in this study can assist investors or managers to comprehend the effect of specific determinants to company’s stock price in Thai capital market.

Keywords: Stock prices, factors, dividend yield, earnings per share, ROE, capital markets

DOI: 10.20472/IAC.2019.051.032

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