• ISSN: 2301-3567
    • Frequency: Quarterly (2013-2014); Monthly (Since 2015)
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Chloe Wu
    • Abstracting/ Indexing: Engineering & Technology Library,  Electronic Journals Library, Ulrich's Periodicals Directory, MESLibrary, Google Scholar, Crossref, and ProQuest.
    • E-mail: joebm@ejournal.net
JOEBM 2015 Vol.3(3): 331-337 ISSN: 2301-3567
DOI: 10.7763/JOEBM.2015.V3.205

Investigation of Thai Manufacturing Public Firms' Characteristics and Financial Strategies towards Financial Performance's Improvement

Janthorn Sinthupundaja and Navee Chiadamrong
Abstract—For a number of years, researchers have described and analyzed inherent factors that may impact on the firms’ financial performance. Relationships of firm characteristics and financial strategies towards firms’ financial performance improvement are topics that have received much attention in the financial literatures. This study investigates these firms’ characteristics relationships, especially the factor of growth, size, and age with the financial strategies in funding their operations, either internal or external financing, and their impact on financial performance improvements. The study collected the data from 242 Thai manufacturing companies listed in the Stock Exchange of Thailand (SET) from six manufacturing industries during 2006-2010. The study was carried out using Structural Equation Modeling (SEM) to identify significant effects among these relationships. The results show that the firm growth has shown negative impact on the firms’ liquidity representing the fact that more internal financing has been preferable. The firm size has shown to have negative impact on the level of leverage, but positive impact on the liquidity and financial performance improvement. In addition, the higher level of leverage also raises the higher level of liquidity. And finally, the liquidity significantly deteriorates the growth of financial performance’s improvement. However, the factor of age did not find to have any significant impact on our interested variables. These findings have also been supported by existing theories and literatures to confirm the validity.

Index Terms—Firm characteristics, age, growth, size, financial strategies, financial performance.

J. Sinthupundaja is with the Logistics and Supply Chain Systems Engineering (LSCSE), Sirindhorn International Institute of Technology (SIIT) Thammasat University, Pathum Thani, Thailand, 12121 (e-mail: miniiz_june@hotmail.com ).
N. Chiadamrong is with the Industrial Engineering Program, Sirindhorn International Institute of Technology (SIIT), Thammasat University, Pathum Thani, Thailand, 12121 (e-mail: navee@siit.tu.ac.th).

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Cite: Janthorn Sinthupundaja and Navee Chiadamrong, "Investigation of Thai Manufacturing Public Firms' Characteristics and Financial Strategies towards Financial Performance's Improvement," Journal of Economics, Business and Management vol. 3, no. 3, pp. 331-337, 2015.

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