COMPARISON OF RELATIONSHIP BETWEEN ECONOMIC VALUE ADDED AFFECT THE STOCK PRICE OF COMPANY LISTED ON THE STOCK EXCHANGE OF THAILAND : CASE STUDY OF SERVICE INDUSTRY GROUP

Abstract

The purposes of the research included the following: to study the relationship between the
economic values and the stock prices, the tourism and leisure sector, in the Stock Exchange of
Thailand. Eight companies were purposively selected from the group. The study examined the selected
companies’ stock prices and information during a 5-year period between 2015 and 2019. Data were
analyzed using multiple regression analysis. With linear regression equations, the information showed
that the economic value-added relationship affected securities prices. All the economic value added
(EVA), net operating profit after tax adjusted accounting item (NOPAT), invested capital (IC), and the
weighted average cost of capital (WACC) had significantly correlated with the companies’ securities
prices in the Stock Exchange of Thailand. Both EVA and IC can be used to describe the securities prices
of the companies in the same direction; while the IC can be used to correctly describe the securities
prices 23%, EVA can be used to correctly describe the securities prices 10%. However, NOPAT and
WACC cannot be used to explain the stock prices. When analyzing their relationship by adopting
multiple regression equations, it was found that IC was able to correctly explain the price movement of
securities most (by 30%), followed by EVA (21%), NOPAT (20%) and WACC (20%), respectively. As for
the Size, it can be used to correctly describe the changes of security prices the least (0.2%).