FACTORS INFLUENCING ON SPECULATION IN INVESTMENT AND INVESTMENT PROPERTY OF THE LISTED COMPANIES ON THE STOCK EXCHANGE OF THAILAND

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Prapaipit Sawatrum
Patsara Pongsukvajchakul

Abstract

This research aimed 1) to explore proportions of speculation in investment and investment property; and 2) to specify factors influencing on speculation in the investment and investment property of the listed companies on the Stock Exchange of Thailand. Secondary data from financial statements of the listed companies on the Stock Exchange of Thailand were collected in the accounting periods from 1 January to 31 December 2011-2015, excluding banks, trust companies, insurance companies, and assurance companies. Variables were tested for any relationships using the Simple Regression Analysis, One-way ANOVA, and Multiple Regression Analysis - Stepwise.


The results revealed that 1) the listed companies on the Stock Exchange of Thailand speculated mostly in long-term investment (48.60%; N = 2,033) followed by short-term investment (27.21%; N=1,138) and investment property (24.19%; N= 1,012) respectively. 2) The factors influencing on speculation in the short-term investment, long-term investment, and investment property were size of company, net cash flow from operations, and net profit margin ratio. The factors having opposite influences were debt to equity ratio, net cash flow from operations, revenue, and net profit margin ratio.

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