The Relationship between Financial Ratios and Stock Prices of The Listed Health Services Sector Companies on the Stock Exchange of Thailand

Authors

  • Luliya Teeratansirikool Faculty of Liberal Arts and Management Sciences, Prince of Songkla University Surat Thani campus
  • Nopparit Nawason Faculty of Liberal Arts and Management Sciences, Prince of Songkla University Surat Thani campus
  • Nalinda Rattanavijit Faculty of Liberal Arts and Management Sciences, Prince of Songkla University Surat Thani campus
  • Ponpirun Thong-oon Faculty of Liberal Arts and Management Sciences, Prince of Songkla University Surat Thani campus

Keywords:

Financial Ratios, Stock Prices, Health Services sector Firms, the Stock Exchange of Thailand

Abstract

The purpose of this research is to study the relationship between financial ratios and stock prices of the listed health services sector companies on the Stock Exchange of Thailand, totally 11 companies. Eight financial ratios and stock price of the listed companies was collected from database of the Stock Exchange of Thailand by quarterly of year 2011 to 2021. The data was analyzed by the statistical software in term of Pearson Correlation Coefficient. The result found that the positive correlation between the liquidity ratio, efficiency ratio, and profitability ratios and the stock prices, however leverage ratio has negatively correlated with the stock prices at 99 percent confidence level. It confirms the relationship between the financial ratio and the price of listed companies’ securities on the Stock Exchange of Thailand. Therefore, investors should use financial ratio data to predict the price of securities in investment decisions.

Downloads

Download data is not yet available.

References

Buranakanokthanasan, W. (2019). KUN executives gradually collect 23.99 million shares to build confidence. After the stock price dropped. Retrieved: December 19, 2020, from https://www.thunhoon.com/article/216399 (In Thai)

Chutinanwarodom, W. (2021). Valuation Technique (1). Retrieved, May 10, 2021, from https://www.set.or.th/dat/vdoArticle/attachFile/AttachFile_1429790123933.pdf

Elifson, K. W., Richard, P., & Audrey H. (1990). Fundamentals of Social Statistics Runyon. (2nd ed) New York: Mc-Grawhill.

Hair, J. F., Black W.C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. (7th ed.) NJ: Pearson.

Iamyingpanich, J. (2020). Thailand Capital Market Development Fund knocked 200 million baht budget to support business sector, capital market, employment - raise personnel level. Retrieved: December 19, 2020, from https://www.efinancethai.com/LastestNews/LatestNewsMain.aspx?release=y&ref=M&id=L3phUFhES3RVZ0U9 (In Thai)

Kasikorn Research Center. (2020). Private hospitals in the year '64, although revenue has recovered. But it is still a challenging and more competitive year (Current Issue No. 3167). Retrieved: December 19, 2020, from https://kasikornresearch.com/th/analysis/k-econ/business/Pages/z3167-Hospital.aspx (In Thai)

Khumsup, P. (2011). Financial Analysis: Concept and Applications.( 12th ed.). Bangkok: Thammasat University Publishing.

Na-Ratchasima, W., Kitvuttishusilp, N., Sensit, Ch., Midsuntia, P., Jun-On, O., Phuensane, P., & Chancharat, N. (2018). Relationship Between Financial Ratios and Stock Prices for Customer Products Industry Firms in The Stock Exchange of Thailand. KKBS Journal of Business Administration and Accountancy, 2(2), 52-64. (In Thai)

Sahananporn, J., & Sukchareonsin, S. (2020). The Relationship between Financial Ratios and Stock Prices: A Panel VAR Approach. WMS Journal of Management Walailak University. 9(4): 15-28.

Sukwatanasinit, K., & Na-Nakorn, S. (2019). The Relationship of Financial Ratios and Stock Prices of the Companies for The Real Estate and Construction Business Listed in The Stock Exchange of Thailand. Mahachula Academic Journal, 6(2), 263-279. (In Thai)

Supatarakul, S. (2011) Information for Business Communication and Decisions (1st ed.). Bangkok: Imagineering.

Supaukson, Ch., Liwkhunupakarn, N., Kutipakdee, T., & Munssetthawit, S. (2019). The Relationship between Profitability and Rate of Return in Capital Gain Yield of Hospital Business and Health Services listed in the Stock Exchange of Thailand. Al-Hikman Journal, 9(17), 29-42. (In Thai)

The Stock Exchange of Thailand. (2015). Fundamental Analysis. Retrieved: April 10, 2021, from https://www.set.or.th/education/th/begin/stock_content04.pdf (In Thai)

The Stock Exchange of Thailand. (2021). Market Statistics. Retrieved: October 10, 2021, from The Stock Exchange of Thailand - Market Data - Market Statistics. (In Thai)

Wadhanapatee, S., Biaslowas, P., & Phungsup, W. (2012) Tests of Market Efficiency in the Stock Exchange of Thailand in the perspective of US Monetary Policy Announcements. Suddhiparitad, 26(79), 109-130.

Wongsuksamerjai, J. (2017). The relationship between management factors and the financial ratios to the stock prices of PTT Public Company Limited. Master of Business Administration. Bangkok University. (In Thai)

Yingniran, Ch., & Charoenkitthanalap, S. (2019). Relationship of Financial Ratio to Stock Price Change of the Service Industrial Companies in Transportation and Logistics Sectors which are. The Journal of Social Communication Innovation, 7(2), 84-93. (In Thai)

Published

2022-06-27

How to Cite

Teeratansirikool, L., Nawason, N., Rattanavijit, N., & Thong-oon, P. (2022). The Relationship between Financial Ratios and Stock Prices of The Listed Health Services Sector Companies on the Stock Exchange of Thailand. Economics and Business Administration Journal Thaksin University, 14(3), 85–104. Retrieved from https://so01.tci-thaijo.org/index.php/ecbatsu/article/view/249556

Issue

Section

Research Article