Relationship Between Profitability and Cash Flow with the Enterprise Value and Dividend Payment of The Real Estate and Construction Business Group Listed on The Stock Exchange of Thailand

Abstract

The research consists purposes were 1. To study the relationship between profitability, enterprise value and dividend payment of real estate and construction industry listed on the Stock Exchange of Thailand, and 2. to study the relationship between cash flow, enterprise value and dividend payment of the industry group. Real estate and construction listed on the Stock Exchange of Thailand. Is a quantitative research there are tools used in the research, namely, a financial statement data collection record form between the years 2019 - 2021, totaling a period of 3 years from the sample group. Derived from specific selection there are 115 companies in the real estate and construction industry listed on the Stock Exchange of Thailand, totaling 345 samples, and the data collected from the research tools are analyzed. Descriptive statistics were used to characterize the data. The correlation coefficient was analyzed to test the relationship between the independent variables and multiple regression analysis was used to test the hypothesis. At the statistical significance levels of 0.01 and 0.05. The results showed that 1) profitability, i.e. return on assets (ROA), had a positive correlation with enterprise value (Tobin's Q) with statistical significance at the 0.05 level, the net profit margin (NPM) has a statistically significant negative correlation with the enterprise value (Tobin's Q) at the 0.01 level, and the return on equity (ROE) has a positive correlation with the dividend rate. Return on Equity (DY) is statistically significant at 0.01, while Return on Equity (ROE) is not correlated with Enterprise Value (Tobin's Q) and Return on Assets (ROA). Ratio of Equity (ROE), Net Profit Margin (NPM) is not correlated with Dividend Payout Ratio (DPR) and Return on Assets (ROA). Net Profit Margin (NPM) is not correlated with Dividend Yield (DY) and 2) Cash flow, i.e. cash flow from financing activities (CFF) has a positive correlation with firm value (Tobin's Q) at statistically significant level of 0.01, cash flow from operating activities (CFO) has a negative correlation. Cash flow from operating activities (CFO) has a positive correlation with the dividend yield (DY) at 0.01 level of significance and cash flow from financing activities. cash flow (CFF) has a negative correlation with dividend yield (DY) at 0.01 statistical significance, while cash flow from investing activities (CFI) has no correlation with dividend yield (DY) and cash flow from activities. Cash flow from operating activities (CFO) Cash flow from investing activities (CFI) Cash flow from financing activities (CFF) has no relation to the dividend payout ratio (DPR).