The Influence of Business Potential on the Growth of Thai Listed Companies in The Market for Alternative Investment
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Abstract
This research aims to study the relationship and impact of business potential on business growth by using the formula for calculating the growth rate recommended by the Capital Market Knowledge Promotion Center 2017, equal to the multiplication of retained earnings reserve and return on equity ratio. The business potential is divided into different areas. The capital structure is measured by the ratio of debt to equity ratio; financial liquidity is measured by the current ratio; and operational efficiency are measured by the return on assets, return on sales, net sales revenue. The data were collected from the financial statements for year 2015 – 2018 of 132 listed companies on the MAI, excluding companies in the financial business group by using multiple regression analysis methods for data analysis with the hypothesis test at a 95% confidence interval. The research results revealed that all three aspects of the business had potentially an impact the business growth by the debt to the equity ratio, current ratio, and net sales revenue, and adversely affecting the company's business growth, and return on assets has a relationship and positive effect on the company's growth rate at a significance level of 0.05. The control factor is considered the firm size, influencing the entity's growth rate.
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