Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia
This study analyzes the effects that certain political-uncertainty factors have on financial firm performance in the Stock Exchange of Thailand (SET). The results of a panel regression performed on a database of 7976 firm-years over 18-year unbalanced panel data from 2001 to 2018 show a mixed relati...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-01-01
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| Series: | Economies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7099/11/1/18 |
| _version_ | 1797443638076112896 |
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| author | Worraphan Trakarnsirinont Wisuttorn Jitaree Wonlop Writthym Buachoom |
| author_facet | Worraphan Trakarnsirinont Wisuttorn Jitaree Wonlop Writthym Buachoom |
| author_sort | Worraphan Trakarnsirinont |
| collection | DOAJ |
| description | This study analyzes the effects that certain political-uncertainty factors have on financial firm performance in the Stock Exchange of Thailand (SET). The results of a panel regression performed on a database of 7976 firm-years over 18-year unbalanced panel data from 2001 to 2018 show a mixed relationship between political uncertainty and firm performance. The constitutional reform harms the return on assets (ROA), and the government election and political protest significantly decreased the market value of equity (MVE). In contrast, constitutional reform increased MVE, and the government election positively impacted ROA. Therefore, this study emphasizes how political unpredictability is assumed to influence firm performance in Thailand’s economy, an Asian developing country. |
| first_indexed | 2024-03-09T12:59:58Z |
| format | Article |
| id | doaj.art-931d69d6b0b44382aec8248384bb6d0c |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T12:59:58Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-931d69d6b0b44382aec8248384bb6d0c2023-11-30T21:56:00ZengMDPI AGEconomies2227-70992023-01-011111810.3390/economies11010018Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in AsiaWorraphan Trakarnsirinont0Wisuttorn Jitaree1Wonlop Writthym Buachoom2Faculty of Business Administration, Chiang Mai University, Chiang Mai 50200, ThailandFaculty of Business Administration, Chiang Mai University, Chiang Mai 50200, ThailandKMITL Business School, King Mongkut’s Institute of Technology Ladkrabang, Bangkok 10520, ThailandThis study analyzes the effects that certain political-uncertainty factors have on financial firm performance in the Stock Exchange of Thailand (SET). The results of a panel regression performed on a database of 7976 firm-years over 18-year unbalanced panel data from 2001 to 2018 show a mixed relationship between political uncertainty and firm performance. The constitutional reform harms the return on assets (ROA), and the government election and political protest significantly decreased the market value of equity (MVE). In contrast, constitutional reform increased MVE, and the government election positively impacted ROA. Therefore, this study emphasizes how political unpredictability is assumed to influence firm performance in Thailand’s economy, an Asian developing country.https://www.mdpi.com/2227-7099/11/1/18political uncertaintypolicy uncertaintyfirm-level performancefinancial performancereturn on assetsmarket value of equity |
| spellingShingle | Worraphan Trakarnsirinont Wisuttorn Jitaree Wonlop Writthym Buachoom Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia Economies political uncertainty policy uncertainty firm-level performance financial performance return on assets market value of equity |
| title | Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia |
| title_full | Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia |
| title_fullStr | Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia |
| title_full_unstemmed | Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia |
| title_short | Political Uncertainty and Financial Firm Performance: Evidence from the Thai Economy as an Emerging Market in Asia |
| title_sort | political uncertainty and financial firm performance evidence from the thai economy as an emerging market in asia |
| topic | political uncertainty policy uncertainty firm-level performance financial performance return on assets market value of equity |
| url | https://www.mdpi.com/2227-7099/11/1/18 |
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