THE FACTORS AFFECTING THE VALUATION APPROACH IN INVESTMENT PROPERTY OF REAL ESTATE AND CONSTRUCTION COMPANIES LISTED IN THE INDEX REFLECTING THE MOVEMENT OF THE FIRST 100 STOCK PRICES IN THE STOCK EXCHANGE OF THAILAND

Abstract

This research aims to study 1) the factors affecting the valuation approach in investment property using the cost method, and 2) the factors affecting the valuation approach in investment property using the fair value method. The sample group used in the study is thirteen real estate and construction business groups listed in the Index reflecting the movement of the first 100 Stock Prices in the Stock Exchange of Thailand during the period of five years from 2019 to 2023, totaling 20 quarters. The tool used to collect data is financial data analysis table. Statistic tools used in this study are descriptive statistics and binary logistic regression analysis. The results of the research found that factors influencing the valuation approach in investment property at a statistically significant level of 0.05 are 1) Company Size, 2) Institutional Ownership, 3) Profitability, 4) Family Ownership, and 5) Growth. These factors positively affect the valuation approach in investment property using the cost method for 96.80%and negatively affect the valuation approach in investment property using the fair value method for 62.50%. The decision made by executives on the investment property valuation policies is based on the appropriateness with their business models. If the asset value is currently increasing, most companies will choose the fair value method to reflect the intrinsic market value of the current asset price. In the case where companies want to reduce the risk from the volatility of gain or loss from asset valuation, including the complexity of valuation, most companies will choose the cost method.