Effect of Thai economy on profit and loss statement risks of agribusinesses on the Stock Exchange of Thailand

Abstract

     This study explored the profit and loss statement risks for agribusinesses on the Stock Exchange of Thailand regarding the current Thai economic conditions. Studying the profit and loss statements for this business sector and creating a vector autoregressive model for forecasting as well as considering the risk from the risk limit revealed that the profit and loss statement for this group has a similar pattern to that in the past. In addition, growth in sales and costs had almost the same trend and the direction was the same in every quarter. Therefore, the results showed that the variable costs of agribusinesses on the Stock Exchange of Thailand were based on sales only. Likewise, the forecasted sales, costs, and gross margin revealed that the value during the assumed period in 2015 was normal proving that agricultural businesses on the Stock Exchange still were not at risk and would be at risk only when the GDP was at least 2.2 percent, consumption decreased to 0.9 percent, and the export of agricultural products declined to 6.1%.