The Relationship of Private Placement and Interests Transfer in the Stock Exchange of Thailand (SET) and The Market for Alternative Investment (mai)

Abstract

The purpose of this study is to examine increase capital overview, to find the difference on cash dividend payment between before and after increase capital periods, and to examine the relationship between Private Placement (PP) and interest transfer. A multiple regression model was used with cash dividend as a representative of interests transfer. Two hundreds and forty-seven sample were obtained from SET and mai listed companies for 10 years during 2008-2017, and were classified into 2 groups to reduce sample bias. The first group consisted of firms that increased fund by Private Placement and the second group included the firms that did not increase any of fund in the same periods. The result showed that, 1) since 2011, PP had been growing steadily over other methods, 2) The cash dividend after PP period was higher than the previous period, and 3) PP had the positive relationship with cash dividend. Furthermore, PP had the positive relationship with large shares holding and cash dividend. The study concluded that firms which increased capital by PP were involved in the interests transfer through cash dividend.