The Effect of Financial Ratio and Economic Indicator to Market Stock Price in Food Industry of Listed Companies in the Stock Exchange of Thailand

Abstract

          Investment involves risks. Therefore, interested investors should study information carefully before deciding to invest, especially investing in the stock market, which has fluctuating prices according to the market and economy. The objectives of this study were to study the efffect of financial ratio and economic indicator to market stock price in food industry of listed companies in The Stock Exchange of Thailand (SET). The research was quantitative research. The sample group used for the study consisted of 55 listed companies in the food and beverage business group registered in the Stock Exchange of Thailand. Data were collected using secondary methods. Data collection of financial ratios, economic indicators, and stock prices collected from 2019 to 2023 in a total of 5 year. In the statistical analysis of the data: first, descriptive statistics were used to describe the percentages, maximum, minimum, mean, and standard deviation. Second, Pearson correlation and multiple regression analysis were analysis data.
          The results demonstrated that 3 financial ratios, namely interest coverage ratio (IC) and fixed asset turnover ratio (FAT) had a positive impact on the market stock price in the food and beverage industry of listed companies in SET with statistical significance at 0.05 level. The financial ratios of total asset turnover ratio (TAT) had a negative impact on the market stock price in the food and beverage industry of listed companies in SET with statistical significance at 0.05 level. The economic indicators had no relationship with the market stock price in the food and beverage industry of listed companies in SET. It can be seen that investment in the food and beverage business category should carefully study the total asset turnover rate before making an investment decision.