POLITICAL FACTORS THAT AFFECT INVESTING IN THE STOCK EXCHANGE OF THAILAND

Abstract

This research aimed (1) to consider political factors affecting investment in the Stock Exchange of Thailand, (2) to analyze the impact of political uncertainty on investment behavior in the Stock Exchange of Thailand, and (3) to propose political approaches affecting investment in the Stock Exchange of Thailand. The research was qualitative.  Key informants included 5 executives of the Stock Exchange of Thailand, 5 politicians, 5 academics, and 10 investors in Bangkok and its vicinity, totaling 25 people by a purposive selection was used.  The research instrument was an interview form. Data analysis was conducted in a descriptive summary. The research results found that: (1) the consideration of political factors affecting investment in the Stock Exchange of Thailand included politically motivated opposition to products, protests, political violence, curfew/martial law, coups, elections/dissolution of parliament, and resignations from important positions. These factors significantly affected uncertainty and volatility in the stock market. Investors tended to reduce their investments or turn to safe assets when faced with political uncertainties, (2) the impact of political uncertainty on investment behavior in the Stock Exchange of Thailand found that political uncertainty reduced trading volume and increased stock market volatility and some investors chose to withdraw their investments, and (3) the suggesting of political approaches that affected investment in the Stock Exchange of Thailand, including creating political stability, establishing mechanisms to reduce the impact of unexpected political events, and supporting risk prevention measures for investors. In this regard, implementing stable policies and building investor confidence were important factors in promoting the growth of the Thai capital market.