The Relationship Between Rate of Return and Stock Price of the Companies Listed on the Stock Exchange of Thailand in TheService Sector

Abstract

This research aimed to study the relationship between the stock price from the return on equity (ROE) and the return on invested capital (ROIC), and to test the return on equity and the return on invested capital that could explain the stock price. The samples were 118 companies listed on the Stock Exchange of Thailand in the service sector. A total of 472 data were collected from the first to the fourth quarter of 2021. The results based on the Sig value found that 1) the return on equitysignificantly correlated with the stock price in the service sector and in the tourism and leisure group at the significance level of 0.028 and 0.011, 2) the return on invested capital significantly correlated with the stock price in the commercial business group at the significance level of 0.026, and 3) Book valuesignificantly correlated with the stock price in the service sector and in the commercial business group at the significance level of 0.020 and 0.078. The explanation of the dependent variable based on the Sig F value showed that the service sector, the commercial business group, and the tourism and leisure group had at least one independent variable that could explain the stock price that was the dependent valuable.