Risks and Returns of Listed Companies on the Stock Exchange of Thailand: Manufacturing Sector and Service Sector Evidence
Keywords:
Risk, Return, the Stock Exchange of ThailandAbstract
The purpose of this research is to examine the relationship between risks and returns of service sector and manufacturing sector, which are major drivers to Thai GDP. This research used listed companies on the Stock Exchange of Thailand which have the highest group index as a sample group. The representative of manufacturing and service sector are a packaging group and commerce, respectively. The data of manufacturing sector and service sector were collected from Biznews database during 2014 – 2016. Market-based variables were employed to evaluate returns and Value at Risk. The coefficient of variation was also examined. The results showed that service sector provided higher return and lower risks than industrial sector during 2014 – 2016. Each sample companies had a variation of returns and risk due to two unsatisfactory situations: politic problem and the death of Thailand's King Bhumibol Adulyadej. To make a list of interested company for investment, the Coefficient of variation was performed and the list indicating the best choice for investment was the THIP, followed by Global and Beauty.
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