The influence of the cash flow statement on the liquidity and wealth maximization of a business. Case Study: Industrial Products in the Stock Exchange of Thailand

Abstract

The objectives of this research were to study the relationship of cash flow statements to liquidity and to study the relationship of liquidity to the maximum wealth of the industrial goods in the Stock Exchange of Thailand. Data from the Company's financial reports for the accounting period for the year ended December 31, from 2017 to 2019, a total of 3 years. The population group that has 80 companies, which analyzes statistical data by using a program for social science research to process to test the relationship between the independent variables, including cash flows and dependent variables are liquidity and maximum wealth. Using hypothesis testing statistics by analyzing regression (Regression Analysis) to analyze the relationship of different variables (Correlation Analysis).

It was found that cash flow statements were correlated with liquidity and liquidity correlated with the maximum wealth of businesses listed on the Stock Exchange of Thailand a case study of industrial goods. By the statements of cash flows three activities are correlated in the same direction and the opposite direction of liquidity is cash flow positive impact on liquidity in both the good and bad. Liquidity in relation to the maximum wealth. They correlate in the same direction with the quick ratio and the inventory turnover. But the relationship in the opposite direction with the current ratio, receivable turnover, and average collection period. Investors and executives and stakeholders can use the information to make investment decisions loan approval organizational management plan or analyze the results of various operations.