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).
[PDF]
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.