Relationship between Capital Structure and Firm Performance and Firm Value of Listed Companies on the Stock Exchange of Thailand
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Abstract
The purpose of this research was to study the relationship between capital structure and firm performance as well as firm value of listed companies on the Stock Exchange of Thailand. There were 462 samples in total. The independent variables are the capital structures while the dependent variables consist of firm performance and firm value. Data analysis includes descriptive statistical analysis and inferential statistical analysis, which are correlation coefficient analysis and multiple regression analysis. The result indicated that capital structure measured by debt to equity ratio is negatively correlated with profitability measured by return on assets and return on equity. It also had a negative correlation with the firm value. In addition, it was found that the capital structure measured by the debt to asset ratio had a negative relationship with the return on equity and firm value. The results implied that when the firms borrowed money from external sources, their cost of capital increased. Sometimes the cost of capital increased by a greater amount compared to the return and firm value generated. Moreover, the results found that capital structure measured by interest coverage ratio has a positive association with firm value. It implied that firms with greater ability to pay the interest may have greater efficiency, which lead to higher firm value. Moreover, firm size, growth, and industry were found to have significant relationship with firm performance and firm value. It is expected that organizations can apply the results to determine the optimal level of cost structure in order to increase firm performance and firm value.
Article Details
เนื้อหาและข้อมูลในบทความที่ลงตีพิมพ์ในวารสารสภาวิชาชีพบัญชี ถือเป็นข้อคิดเห็นและความรับผิดชอบของผู้เขียนบทความโดยตรงซึ่งกองบรรณาธิการวารสารไม่จำเป็นต้องเห็นด้วยหรือร่วมรับผิดชอบใด ๆ
บทความ ข้อมูล เนื้อหา รูปภาพ ฯลฯ ที่ได้รับการตีพิมพ์ในวารสารสภาวิชาชีพบัญชี ถือเป็นลิขสิทธิ์ของวารสารสภาวิชาชีพบัญชี หากบุคคลหรือหน่วยงานใดต้องการนำข้อมูลทั้งหมดหรือบางส่วนไปเผยแพร่ต่อหรือเพื่อกระทำการใดๆ จะต้องได้รับอนุญาตเป็นลายลักษณ์อักษรจากวารสารสภาวิชาชีพบัญชี ก่อนเท่านั้น
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