The Impact of COVID-19 to Effect on the Relationship Between Stock Price and Profitability and Cash Flow of Listed Company in The Stock Exchange of Thailand
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Abstract
This research article aims to study: 1) the impact of the COVID-19 crisis on the relationship between stock prices and the profitability of listed companies on the Stock Exchange of Thailand, and 2) the impact of the COVID-19 crisis on the relationship between stock prices and the cash flow of listed companies on the Stock Exchange of Thailand. This study utilized a sample of companies listed on the Stock Exchange of Thailand that were selected through a specific sampling method. Comprehensive data was gathered from 379 companies, using secondary data from financial reports covering the years 2018 to 2021, totaling 1,516 sets of data. The analysis employed multiple regression methods to study the relationships.
The research findings revealed that: 1) the impact of the COVID-19 crisis had a negative effect on the relationship between stock prices and company profitability, measured by net profit margin, return on assets, and return on equity; and 2) the impact of the COVID-19 crisis had a negative effect on the relationship between stock prices and operating cash flow. The results of this research confirm the damage caused by the COVID-19 crisis on the relationship between stock prices and profitability, as well as the operational cash flow of companies. Additionally, it will assist investors, managers, and financial analysts in understanding the implications of the COVID-19 crisis on the stock market and help in better investment planning and financial management.
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