Structural Relationship of Factors Influencing Firm Value of Companies Listed in the Stock Exchange of Thailand
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Abstract
The objective of this research are to study the implication of the characteristics of lish company on capital structure and firm value, and, also, to study the implication of capital structure on the firm value of companies listed in the Stock Exchange of Thailand, whereby a sample of 339 listed companies was analyzed. This research is a quantitative research using statistics, minimum, maximum, mean, standard deviation. and a structural equation model was used to test the hypothesis.
The results showed that the specific factors of the entity castes influence on the capital structure. Here, the performance and tangible assets of the business casted a positive influence on the capital structure, while the opportunity for growth casted no impact upon the capital structure. It was also found that the specific factors of the entity casted influences upon the value of the entity. Here, the opportunity for performance growth casted positive influence on firm value, while the tangible assets casted no impact upon the value of the entity. Further, the results also show that capital structure casted positive influence on enterprise value. From the results of this research, it empirically establishes capital structure as a passive factor affecting enterprise value. Executives of companies listed on the Stock Exchange of Thailand can use these research findings to manage their capital structure and ultimately add value to their businesses.
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References
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