The relationship between financial ratios and beta : a study of stocks on the stock exchange of Thailand | |
| Author | Nirutchara Watthanawanitwut |
| Call Number | AIT RSPR no.SM-07-37 |
| Subject(s) | Ratio analysis Stock exchanges--Thailand |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration in International Business |
| Publisher | Asian Institute of Technology |
| Abstract | According to the capital asset pricing model, beta can be used to assess risk of stock in the Thai capital market. There have been a number of studies on the relationship of financial ratios and risk of stocks on the Stock Exchange of Thailand. Most of them used multiple regression technique for analysis. These studies have used logistic regression models for analysis on the basis of different assumptions about study variables. The present study basically deals with finding the relationship between financial ratios and stocks' beta of the Thai companies in SET50 index for the period of 2002-2006. Eight financial ratios; gross margin percentage, profit margin percentage, earning per share, asset turnover, invested capital turnover equity turnover, financial leverage and debt/equity ratio, were taken to develop a model of logistic regression in order to identify the causes of high beta. It was found out three variables; (1) gross margin percentage, (2) asset turnover and (3) financial leverage significantly explained the relationship of high beta. |
| Year | 2007 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sundar; |
| Examination Committee(s) | Tang, John C. S.;Dimmitt, Nicholas J. |
| Scholarship Donor(s) | RTG Fellowship |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |