The Capital Structure and Financial Risk Management that Affect the Market Value of Listed Companies in the Stock Exchange of Thailand

Abstract

This research consists purposes were 1. to study the capital structure that affects the stock value of companies listed on the Stock Exchange of Thailand in the industrial product sector and 2. to study financial risk management that affects the stock value of companies listed on the Stock Exchange of Thailand in the industrial product sector. This research is quantitative the research instrument used was data from companies listed on the Stock Exchange. The sample group consisted of companies listed in the industrial product sector of the Stock Exchange of Thailand that operated during the years 2020–2024 (B.E. 2563–2567). A total of 143 companies were included in the study. The data collected were analyzed using descriptive statistics, including percentage, mean, and standard deviation, as well as multiple regression analysis. The study results revealed that 1) The capital structure that affects the stock value of companies listed on the Stock Exchange of Thailand in the industrial product sector consists of the following 1.1) The current ratio (CR) has an average value of 5.15%, indicating significant variation in the use of capital among industrial companies. Most companies have a low capital ratio, while a few have very high ratios 1.2) The debt-to-equity ratio (DE) has an average of 0.89 times, reflecting volatility in capital structure across listed companies in the industrial product sector 1.3) The debt service ratio (DS) shows a very high average of 962.38 times, indicating considerable differences in debt-servicing ability among companies. Some negative values may result from companies experiencing negative cash flow 1.4) The debt coverage ratio (DC) has an average of 952.98 times, further reflecting high volatility in debt usage among listed companies in this sector 1.5) The interest coverage ratio (IC) has a negative average of -15,887.43 times, indicating significant variation in the ability to cover interest expenses across companies and 2) Financial risk management that affects the stock value of companies listed in the industrial product sector includes the following The current ratio (CR) has a coefficient β = 0.016 and Sig. = 0.029, which is less than 0.05, indicating statistical significance. The positive coefficient suggests that an increase in the current ratio leads to an increase in Tobin's Q. The debt-to-equity ratio (DE) has a coefficient β = -0.009 and Sig. = 0.004, also statistically significant. The negative coefficient indicates that an increase in the debt-to-equity ratio leads to a decrease in Tobin's Q. The debt service ratio (DS) has a coefficient β = 0.009 and Sig. = 0.808, which is greater than 0.05, indicating no statistical significance. This implies that the debt service ratio does not have a significant impact on Tobin's Q.