Factors Affecting Net Profit, Financial Ratios Analysis and Financial Failure of the Listed Companies in Tourism and Leisure Sectors of the Stock Exchange of Thailand before and during the pandemic of Coronavirus Disease 2019

Abstract

The objectives of this study are to study the factors affecting the net profit of the Listed Companies in Tourism and Leisure Sectors of the Stock Exchange of Thailand, and to compare financial ratios and predict the financial risk by using Z-score model. The samples of this independent study consisted of the 14 Listed Companies in Tourism and Leisure Sectors of the Stock Exchange of Thailand from 2012 to 2021. The factors affecting the net profit were explored by the pooled panel regression model, fixed effects regression model (FEM) and random effects regression model (REM). Furthermore, the Z-score model was used to analyze the financial failure of such Listed Companies in Tourism and Leisure Sectors of the Stock Exchange of Thailand. Firstly, the results of study showed that the Company’s sales had a positive impact on the net profit of the Listed Companies in Tourism and Leisure Sectors of the Stock Exchange of Thailand, factors total liabilities and expense had a negative effect on the net profit. Secondly, according to financial ratio analysis, it indicated that the Coronavirus Disease 2019 spread out had a negative impact on financial ratios. For example, the profitability ratio decreased while the leverage ratio increased. Finally, the financial risk analysis by Z-score model, it indicated that the number of companies which were at risk of financial failure had also risen to failure during the pandemic times.