The Relationship Between Performance and Earnings Quality on Market Stock Price of Technology Industry Group of Listed Companies on the Stock Exchange of Thailand

Abstract

This research aims to examine the relationship between performance and profit quality with the market stock price of technology sector companies listed on the Stock Exchange of Thailand. The study utilized a sample of 384 instances from the years 2019 to 2021, using secondary data from the financial reports of listed companies available in the Stock Exchange of Thailand's online database. Descriptive statistics, including mean, minimum, maximum, and percentage, were used for data analysis, alongside inferential statistics, such as multiple correlation analysis and multiple regression analysis. The results revealed that the return on equity (ROE) and earnings before interest, taxes, depreciation, and amortization (EBITDA) were significantly positively correlated with the market stock price (SP) at a statistical significance level of 0.001. Conversely, earnings quality measured by total net operation accruals (NOA) was significantly negatively correlated with the market stock price at a statistical significance level of 0.05. The cash flow to operating profit ratio (CFO) showed a negative correlation with the market stock price, while earnings quality measured by working capital accruals (WCA) had a positive correlation with the market stock price, though not statistically significant at the 0.05 level. Investors and interested parties can use these research findings to make more effective investment decisions.