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

Abstract

A study of 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, the purpose is 1) to find the relationship between changes in stock prices and the financial ratios and 2) The information is provided to the investments, to make the decision to invest in the stock market. Quantitative research methodology to analyze the return on stock by using the secondary data for the year 2012 to 2016, total 5 years, total 420 sets, from 84 companies. The research is study for 14 financial ratios. The dependent variable is the stock price of public companies in real estate and construction on the Stock Exchange of Thailand. The statistics used in the descriptive statistics are minimum, maximum, average, standard deviation, variance, oblique and highness, and quantitative data analysis. Test the relationship of two variables by using Pearson's Correlation Coefficient and multiple regression analysis was used by incremental stepwise method. Data were processed from statistical computer program.The research results show that total asset turnover ratio and gross margins ratio effecting positive influence on stock market prices of the companies for the real estate and construction business listed in the Stock Exchange of Thailand. The total asset turnover ratio was the most influential, followed by gross margin ratio. As a result of the change in the total asset turnover ratio, the stock price change of 0.197 standard unit and the gross margin ratio, the stock price change of 0.122 standard unit, the statistical significant level was 0.05.