An Empirical Analysis of the Relationship Between Financial Ratios and Stock Prices of Companies in the SETCLMV Group
Article Sidebar
Main Article Content
Abstract
This article aimed to study the relationship between financial ratios and stock prices of companies listed on the Stock Exchange of Thailand under the SETCLMV Index. This research was quantitative. The sample was made up of the companies listed on the Stock Exchange of Thailand from firms listed in the SETCLMV group. The data used in the study was secondary data, collected from the Stock Exchange of Thailand between 2019 and 2023 for a total of five years. After selecting the companies with complete data, there were a total of 38 firms with 190 datasets. The analysis methods included 1) descriptive statistics, 2) correlation analysis, and 3) multiple regression analysis to examine the relationship between financial ratios and stock prices. Firm size and the GDP of CLMV countries were used as control variables.
The research findings indicated that the return on assets had a positive and statistically significant relationship with stock prices at the 0.01 level. However, the debt-to-equity ratio and the current ratio were not significantly related to stock prices. Regarding control variables, firm size demonstrated a negative correlation with stock prices at the 0.01 level, while the GDP of CLMV countries showed no statistically significant relationship with stock prices.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Views and opinions appearing in the Journal it is the responsibility of the author of the article, and does not constitute the view and responsibility of the editorial team.
References
Ahmed, A., & Kumar, B. (2025). Technical and fundamental analysis of selected securities. International Journal of Humanities, Social Sciences and Management (IJHSSM), 5(1), 831-840. Retrieved from https://ijhssm.org/issue_dcp/Technical%20and%20Fundamental%20Analysis%20of%20Selected%20Securities.pdf
Akhtegan, N., & Elmas, B. (2021). Relationship between financial ratios and stock value. International Journal of Health Sciences, 5, 813-832. https://doi.org/10.53730/ijhs.v5nS2.13884
Djashan, I. A., & Agustinus, Y. (2020). The effect of firm size, profitability, audit committee, and other factors to firm value. GATR Accounting and Finance Review, 5(1), 22-27. https://doi.org/10.35609/afr.2020.5.1(3)
Fama, E. F. (1991). Efficient capital markets: II. The Journal of Finance, 46(5), 1575-1617. https://doi.org/10.1111/j.1540-6261.1991.tb04636.x
Karki, D., Dahal, R. K., Perera, W. K. L., Wimalasiri, E. M., & Ghimire, K. (2024). The relevance of financial performance in determining stock prices of insurance companies. Intellectual Economics, 18(2), 308-328. https://doi.org/10.13165/IE-24-18-2-04
Krongten, M., & Kumansing, S. (2022). Relationship between financial ratio and stock prices of listed companies in the stock exchange of Thailand: SET100. Interdisciplinary Journal of Buriram Rajabhat University, 6(2), 117-126. Retrieved from https://so02.tci-thaijo.org/index.php/journalfms-thaijo/article/view/260297
Ministry of Foreign Affairs. (2023). ASEAN Economic Community: AEC. Retrieved from https://asean.mfa.go.th/th/index
Pallavi, G. P., & Dsa, K. T. (2025). A systematic review and meta-analysis of behavioral finance. ICCAMEASS-2023 Conference. Retrieved from https://www.researchgate.net/publication/387737665
Pražák, T., & Stavárek, D. (2017). The effect of financial ratios on the stock price development. Interdisciplinary Economics and Business Research, 43, 3. Retrieved from https://ideas.repec.org/p/opa/wpaper/0043.html
Prowanta, E. (2018). The effect of GDP, inflation, exchange rate, interest rate on stock price index in early warning system: An empirical study in ASEAN-5 countries. Archives of Business Research, 6(12), 90-100. https://doi.org/10.14738/abr.612.5755
Seaksiri. K., Boonmunewai, S., & Wimoonard, T. (2018). The influence of financial ratio to market price of listed companies in the securities exchange of Thailand: A case study of the service industry. Research Community and Social Development Journal, 12(2), 71–84. Retrieved from https://so04.tci-thaijo.org/index.php/NRRU/article/view/164578
Sibarani, B. (2024). Herding behavior in financial market – A systematic literature review. Jurnal Riset Manajemen Sains Indonesia, 15(1), 33-45. Retrieved from https://www.researchgate.net/publication/379495962
Sonpukdee, C., & Yamkamang, T. (2020). Financial ratios that correlate with the securities prices of listed companies in the stock exchange of Thailand. Journal of Management and Development, Ubon Ratchathani Rajabhat University, 8(1), 151–164. Retrieved from https://so06.tci-thaijo.org/index.php/JMDUBRU/article/view/249724
Tarmidi, D., Pramukty, R., & Akbar, T. (2020). Fundamental analysis of financial ratios on stock prices. Saudi Journal of Economics and Finance, 4(5), 176–180. https://doi.org/10.36348/sjef.2020.v04i05.003
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
The Stock Exchange of Thailand. (2017). SET CLMV exposure index. Retrieved from https://www.set.or.th/th/market/index/setclmv/profile
Tripattanasit, P., Chotkunakitti, P., Suksanguan, W., Srithaworn, W., & Kobkanjanapued, Y. (2024). Testing the Relationship between financial ratios and stock prices of listed companies on the stock exchange of Thailand: Before, during and after the COVID-19 Pandemic. Journal of Arts Management, 8(4), 65-88. Retrieved from https://so02.tci-thaijo.org/index.php/jam/article/view/271384
Wanaset, A. (2020). The effect of financial ratios to stock price of listed companies in Thailand and Indonesia. Journal of Federation of Accounting Professions, 3(7), 48-68. Retrieved from https://so02.tci-thaijo.org/index.php/JFAC/article/view/248360
Wongsakun, K., & Dampitakse, K. (2021). Economic factors and financial ratio affecting on stock price of Thai listed companies: Energy industry sector. Journal of Humanities and Social Sciences, Rajapruk University, 7(1), 241–254. Retrieved from https://so03.tci-thaijo.org/index.php/rpu/article/view/251682
