A Comparative Study Measurement Value Subsequent to Initial Recognition of Property Plant and Equipment and Firm’s Future Performance of Listed Company in the Stock Exchange of Thailand

Abstract

The research objectives were i) to investigate relationships between property, plant and equipment measurement and firm’s future performance and ii) to compare between cost model versus revaluation model of property, plant and equipment measurement and firm’s future performance. Firm’s future performance was measured by operating income and cash flow from operating activities. This study examined 438 firms, listing on the Stock Exchange of Thailand, whose financial statements for period 2011-2015 (1,760 firm-year observations). The Multiple Regression Analysis method was used to analyze the data for hypothesis testing. The result found that there was significantly positive relationship between two model measurements of property, plant and equipment to future’s firm performance. Additionally, comparison between cost model versus revaluation model revealed the revaluation model had more significantly positive relationship than cost method.