THE RELATIONSHIP BETWEEN FINANCIAL RATIOS AND RETURN ON STOCK INVESTMENT OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND: ENERGY AND UTILITY GROUP

Abstract

This research aims to study the relationship of financial ratio and return on stock investment of  Listed Companies in the stock Exchange of Thailand: Energy and Utility Group. The secondary data were colleced from related websites for example, http://www.setsmart.com and https://www.set.or.th starting s from January 1, 2013 to December 31, 2017 comprises of  60 months data to include in the analysis. There were 5 companies out of total 27 companies were selected based on the highest market capitalization as samples of the study. All of these companies were listed in Energy and Utilities sector of the Stock Exchange of Thailand. The multiple regression model was used in the analysis with the E-view program. 

The summary of the results are as follows : the study found that  the financial ratios that affect the return on investment of securities. in the same direction are the price to earnings ratio and the turnover ratio of the receivables tested on 95% confidence level. It can be concluded that  if the price to earnings ratio and the turnover ratio of the receivables increases, .The return on investment of securities also increases