Factors Affecting the Rate of Return on Ordinary Shares of Listed Banking and Insurance Businesses on Thai Stock Exchange
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Abstract
The purpose of this research was to evaluate the factors affecting the rate of return on the ordinary shares of listed businesses in banking and insurance companies. Twenty-three companies listed on the Thai Stock Exchange were evaluated based on the descriptive and inferential statistical processes of their annual time series data from 2012 to 2021. This evaluation involved analyzing multiple regression models to determine the related factors affecting the rates of return of ordinary shares of banking and insurance companies on the Thai Stock Exchange. The findings revealed that the current ratio, return on equity, price-to-earnings ratio, and nonresident net fund flows impacted the rate of return, with a statistical significance of positive correlation. Other factors, including the dividend yield ratio and the COVID-19 pandemic, affected the rate of return, with a statistically significant negative correlation. This study’s results are applicable to the sustainable operating strategies of listed banking and insurance businesses and to the development of a company’s risk prevention strategies. Those wishing to invest in ordinary shares in banks and insurance companies can also use these results to make rational investment decisions in the current economic situation.
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