Equity Investment Climate and Factors Affecting The Trading of Equity Instruments by Investors Within Thailand
Keywords:
Investment Climate, Equity Instruments, Trading in Equity InstrumentsAbstract
The purposes of this research were 1) to study the investment Climate in equity instruments of domestic investors through the Stock Exchange of Thailand. And 2) to study the factors affecting the trading of equity instruments by domestic investors on the Stock Exchange of Thailand. The methodology focused on quantitative research. The sample of the study consisted of monthly secondary data collection from January 2016 to October 2021, covering 70 months. This research used the Autoregressive Distributed Lag model to analyze the data.
The findings showed that the number of investors who opened stock trading accounts on the Stock Exchange of Thailand tends to increase during the period from January 2020 to September 2021, and the number of stock trading accounts opened by investors also tends to increase. In addition, by studying the factors affecting domestic investors' stock trading on the Stock Exchange of Thailand, it was found that the stock price index of the Stock Exchange of Thailand and the dividend yield in the Stock Market of Thailand have a long-run equilibrium relationship with the net value of domestic investors' stock trading in Thailand in the same direction, while the 12-month fixed deposit interest rate has a long-run equilibrium relationship with the net value of domestic investors' stock trading in Thailand in the opposite direction. Therefore, during the current period when deposit interest rates are low, The government should encourage people who save money or those who want to invest their money to choose to invest in more equities instruments or stocks. Which, in addition to making savings grow, also helps increase the channel for raising funds for the company to use. Continue to expand business within the country.
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