The Influence of Financial Efficiency on Stock Prices: Empirical Evidence from Listed Companies in the Property and Construction Industry on the Stock Exchange of Thailand

Abstract

              This study aimed to 1) analyze the influence of financial efficiency on stock prices and 2) examine the influence of financial efficiency on stock prices of companies in the property and construction industry with firm size as a control variable. The sample comprised 119 companies listed on the Stock Exchange of Thailand in the property and construction industry. The sample was obtained from the entire population, with outliers removed to ensure the suitability of the data for analysis. The research instrument was a financial data extraction form designed to collect and categorize financial variables. Secondary data were obtained from annual reports, Form 56-1 One Reports, and financial statements of listed companies during 2020–2024. Data were analyzed using descriptive statistics, including mean, maximum, minimum, and standard deviation, and inferential statistics using multiple regression analysis.

             The results revealed that (1) in the model without a control variable, financial efficiency measured by the current ratio had a significant negative influence on stock prices, while total asset turnover, debt to equity ratio, net profit margin, return on assets and return on equity showed no significant effects. (2) When firm size was added as a control variable, the explanatory power of the model increased from 2.8% to 22.7%. Significant predictors included the current ratio, debt to equity ratio, and net profit margin, all of which exhibited significant negative influences on stock prices, whereas total asset turnover had a significant positive influence. These findings indicate that firm size plays an important role in strengthening the relationship between financial efficiency and stock prices, making the it more evident.