Relationship between Profitability and Debt Management Ability with Dividend Payment of the Companies Registered in the Stock Exchange of Thailand (SET100)

Abstract

The objectives of the research were to study relationship between profitability and debt management ability with dividend payment of the companies registered in the Stock Exchange of Thailand (SET100) and to investigate the relationship between profitability and debt management ability with dividend payment of the companies registered in the Stock Exchange of Thailand (SET100) during 2518-2521 in a total of 68 companies excluding the bank groups and the companies without dividend payment in cash within 3 years. The independent variables consisted of the ratios of the gross profit margin, the net profit margin, the return on total assets, the return on equity, the debt to total assets, and the debt to equity. The study of the dividend payment was conducted by measuring the rations of the dividend payment and dividend yield. The data were analyzed by using statistical tests: the analysis by using descriptive statistics to explain, illustrate, or conclude the general data of the samples, the correlation coefficient analysis to test the relationship between the independent and dependent variables and the hypothesis.    

            The research findings were as follows.

1. The ratios of the return on total assets had the negative relationship or were in the opposite direction to the dividend payment measured by the ratios of the dividend payment with the statistical significance at the level of .05. The ratios of the gross profit margin, the net profit margin, the return on total assets, the return on equity, and the debt to equity did not have the relationship with the dividend payment measured by the ratios of the dividend payment.
2. The ratios of the return on total assets and the ratios of the debt to equity had the positive relationship or were in the same direction of the dividend payment measured by the rations of the dividend yield with the statistical significance at the level of .05. The ratios of the gross profit margin, the return on equity, and the debt to the total assets had the negative relationship or were in the opposite direction to the dividend payment measured by the rations of the dividend yield with the statistical significance at the level of .05, but the net profit margin did not have the relationship with the dividend payment measured by the rations of the dividend yield.