The influence of cash flows on profitability ratios and market capitalization of listed companies in the stock exchange of Thailand

Abstract

          The objectives of this research were (1) to study the influence of cash flow on profitability of listed company on the Stock Exchange of Thailand and (2) to study the influence of cash flow on the market capitalization of listed company on the Stock Exchange of Thailand, during the year 2017-2021, a total of 5 years. The sample used in the study was 406 companies, by using cash flow from operating activities, cash flow from investing activities, and cash flow from investing activities were independent variables, using the profitability ratio, gross profit ration, net profit ratio, return on asset ratio, and return on equity ratio and the market capitalization were the dependent variable, and using firm size was the control variable. Statistic used for data analysis include: Description statistics consisted of minimum, maximum, mean, and standard deviation to summarize the preliminary data and inferential statistic was multiple regression for research hypothesis testing. 

          The study found that cash flow from operating activities had a positive influence on gross profit ratio, net profit ratio, return on asset ratio, and return on equity ratio. Cash flow from financing activities had a negative influence on the return on asset ratio and return on equity ratio. Cash flow from financing activities had no influence on the dependent variables.