The Relationship between Financial Ratios, Market Capitalization and Stock Returns in The Health Care Service Sector of The Stock Exchange Of Thailand

Abstract

The objectives of The relationship between financial ratios, market capitalization and stock returns in the health care service sector of the stock exchange of Thailand were  (1) to study the relationship between financial ratios, market capitalization and the stock returns in health care service sector of the stock exchange of Thailand and (2) to be used as information for investors to make an investment decision in the health care service sector.  The scope of the research is the securities information from year 2015 - 2019 of the listed company in the Stock exchange of Thailand that result the health care service sector listed in the Stock Exchange of Thailand.  The financial ratios used for studying are return on equity, total asset turnover, current ratio, price per equity ratio, price per book value ratio, debt to equity ratio, dividend yield, market capitalization. The research model used descriptive statistics, Correlation Analysis and Regression Analysis at the significant level of 0.05.  The result of the study found the price to book value ratio there was statistically significant relationship in opposite direction with the stock return with a 95%.  And the dividend yield there was statistically significant relationship in the same direction.