FACTORS AFFECTING YIELD OF AUTOMOTIVE INDUSTRY GROUP’S STOCK INDEX

Abstract

The study on factors affecting yield of automotive industry group’s stock index in Stock Exchange of Thailand (SET) aims to study factors affecting yield of automotive stocks. The studied factors consisted of 4 factors including THB to USD exchange rate, weighted average loan interest rate (INA) of 10 commercial banks, SET yield and crude oil price. The study started from 1 January 2013 to 31 December 2017 for 60 months totally. The Ordinary Least Squares (OLS) method was adopted to produce the Multiple Regression as a research instrument. The study found that the yield of automotive industry group’s stock index could forecast yield of automotive industry group’s stock index at 0.6770 or 67.70%. According to economic factors consideration, the study found 2 factors i.e. SET yield and crude oil price. These 2-factor had linear relationship and could forecast the yield of automotive industry group’s stock index indicating statistical significance at the 0.05 level which conformed to the defined hypothesis.