Relationship between Profitability Ratios and Market Price of Insurance Group Companies Listed on The Stock Exchange of Thailand
Keywords:
Profitability Ratios, Market Price, Insurance GroupAbstract
This research aimed to study the relationship between Profitability Ratios i.e. Net profit margin ratio (NPM), Return on asset ratio (ROA), Return on equity ratio (ROE), and Market price of Insurance group companies listed on The Stock Exchange of Thailand (SET) by collecting annual data for 5 years from 2017 to 2021, total 15 companies. The data were collected from secondary sources, and analyzed with both descriptive and inferential statistics by using Pearson correlation coefficient analysis.
The results showed that the overall Net profit margin ratio (NPM) and market price of the Insurance group had a significant positive relationship at the .01 level with a correlation coefficient of 0.371. There was no statistical correlation between the Return on asset ratio (ROA), Return on equity ratio (ROE), and Market price of the Insurance group. If considered separately by each company, it was found that there are 2 companies whose Profitability Ratio is statistically significantly correlated with the Market price of securities, namely Thaire Life Assurance PCL.: THREL and Thaivivat Insurance PCL.: TVI.
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