Relationship between Assets Growth and Stock Returns of Listed Companies on The Stock Exchange of Thailand
This study examined the relationship between asset growth and stock return of listed companies in The Stock Exchange of Thailand. The samples used in the study were the company listed on the Stock Exchange of Thailand in total of 414 companies during the period from 2003 to 2016 with a total of 5,796 data. Conducted through two steps, the first step was to study the relationship between asset growth and stock return. While comparing the influence of asset growth and other independent variables, the test results from this stage showed that asset growth and the stock return had an inverse relationship. Asset growth was an independent variable that influenced stock return the most. The second step examined various types of asset growth and stock return. The test results from the second stage showed that there was an inverse relationship between asset growth and stock return, especially that from the external source of financing.
Bangkok. Amarin Printing and Publishing Public
Co., LTD; 2005.
2. Cooper M, Gulen H, Schill M. Asset growth and
the cross-section of stock returns. Journal of Finance.
2008; 63: 1609–1651.
3. Claessens S, Djankov S, Lang L. The separation
of ownership and control in East Asian corporations.
Journal of financial Economics. 2000; 58: 81-112.
4. Suvimol L. The Relationship between The Growth
Rates of Total Assets and The Growth of net Profit of
The Finance Companies in The Securities Exchange of
Thailand [MSc Thesis]. Bangkok: Dhurakijpundit
University; 1996. Thai.
5. Fama E, French K. Common risk factors in the
returns on stocks and bonds. Journal of Financial
Economics. 1993; 33: 3-56.
6. Titman S, John W, Feixue X. Capital Investment
and Stock Return. Journal of financial and Quantitative
Analysis 2004; 39: 677-700.
7. Hirshleifer D, Kewei H, Siew Hong T, Yinglei Z.
Do Investors Overvalue Firms with Bloated Balance
Sheets? Journal of Accounting and Economics.
2004; 38: 297-331.
8. Lakonishok J, Andrei S, Robert V. Contrarian
investment, extrapolation, and risk. Journal of Finance.
1994; 49: 1541-1578.