Relationship between profitability and the stock price index of the listed companies on mai stock exchange

Abstract

This research aims to study the relationship between profitability including gross margin, operating margin, net profit margin, Return on Total Assets, and Return on Equity, and the SET index and dividends. The information is collected from the listed companies on the Market for Alternative Investment (MAI). The data comes from the financial statements and the annual reports of 28 companies with profit with no consecutive loss for more than 3 years and a top-five maximum registered capital of each business category during 2013 – 2017 with the accounting circle starting from 1 January – 31 December of each year. The statistics used for data analysis are descriptive statistical analysis. The secondary data is analyzed in the form of arithmetic mean (Mean), Maximum, Minimum and Standard Deviation to describe the characteristics of the Pearson's Correlation Coefficient Sample Analysis. The ratio that represents each group is then analyzed by Multiple Regression Analysis to find the relation with the stock price index and dividends. The results show that profitability including the profit margin, Return on Total Assets, and Return on Equity has the relationship with stock price index and dividend at 99% confidence level.