Cash Flow, Stock Returns and the Performance of the Listed Companies on the Market for Alternative Investment (MAI)
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Abstract
The objective of this research is to study the relationship between cash flow and stock returns and performances of the listed companies on Market for Alternative Investment (MAI), Thailand. Variables used in the study are cash flow from operating, investing and financing activities, net cash flow, future stock returns and future performance during 2011 – 2016. The relationship between cash flow and stock returns and performances of the listed companies are explored using descriptive statistics and multiple regression analysis.
The results found that cash flow from operating activities is positively significant relates to the future performances but is not significant relates to the stock returns. In addition, cash flow from investing activities is positively significant relates to the stock returns but is not significant relates to the future performances. Cash flow from financing activities is negatively significant relates to the stock returns but is not significant relates to the future performances. Furthermore, net cash flow is positively significant relates to the future performances. It can be concluded that information on cash flow (operating activities, investing activities, financing activities and net cash flow) are important to investors for securities investing decision making. The users of the financial statements can be use the results drawn from this study as a guide to analyze financial statements for decision making.
Article Details
The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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