The Effect of Liquidity and Financial Performance On-Market Capitalization of the listed companies in The Stock Exchange of Thailand: Resource Industry Group

Abstract

The objectives of this research were to: 1) Study the liquidity measured by the current ratio affects the financial performance and the market capitalization. 2) Study the liquidity measured by the working capital affects the financial performance and the market capitalization. 3) Study the financial performance affects the market capitalization. The research tool was the data of the financial statements that collected from 2019 to 2021, a total of 3 years. The sample groups were the listed companies in the Stock Exchange of Thailand: Resource Industry Group, energy and utilities sector, 55 companies for a data to analyze 165 firm years. The descriptive statistic Maximum, Minimum, The average, and the standard deviation, and the inferential analysis by the correlation coefficient and the multiple regression analysis. The results of this study found that the liquidity measured by the current ratio has a positive affected the earnings per share (EPS) at a statistically significant level of 0.01, and has a significant positive affected the market capitalization (market cap) at the 0.05 level. The Liquidity measured by working capital has a positive affected the earnings per share (EPS) and the market capitalization, at a statistically significant level of 0.01. The financial performance measured by the earnings per share (EPS) has a positive affected the market capitalization at a statistically significant level of 0.01.