RELATIONSHIP BETWEEN CASH FLOW RATIOS AND STOCK PRICES OF COMPANIES LISTED ON THE STOCK EXCHANGE OF THAILAND DURING THE CORONAVIRUS 2019 SITUATION

Abstract

Abstract

                    The purpose of this study is to examine the relationship between the operating cash and the stock price of listed companies on the Stock Exchange of Thailand during the 2019 coronavirus situation. Financial statements were collected during the period 2017 – 2022, from the online database SETSMART and BLOOMBERG, sample size is 2,292 firm-year observations. The study divides the independent variables which focusing on operating cash flow, a total of 6 cash flow ratios, including 1) the operating cashflow to current liabilities; 2) the operating cashflow to total liabilities 3) the operating cashflow to total assets 4) the operating cashflow to total income 5) the operating cashflow to net profit, and 6) the operating cashflow to shareholders' equity. This research employes a descriptive statistical analysis, and multiple regression analysis using ordinary least square, fixed effect and random effect regression models and use Hausman test to select the suitable models.

               The results of the research find that by using the ordinary least square, none of the variables found to relate to stock prices during the COVID-19. Due to the panel data, and the Hausman test in selection the model, fixed effect regression model is the most suitable, and the results found that operating cashflow to total assets and size of business relate to the price of the listed company’s stocks during the 2019 coronavirus.