Research article

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Index Effects: A Review and Comments Nattawut Jenwittayaroje Pages 1 - 15    Download PDF  Article preview Cite Abstract The index effect refers to an event where the significant changes in price and trading volume are observed from stocks that are added to or deleted from a stock index. Research on the index effect has been very active in the past decades. This article provides an overview of the research on the index effect by discussing and summarizing the empirical results, the five main hypotheses that have been proposed in the existing literature to explain the index effect, and the relevance of each of the hypotheses to the empirical findings. The article then discusses the implication of the empirical findings of index effect research on the Efficient Market Hypothesis. Finally, the article provides future research opportunities on the index effect topic.
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การวัดมูลค่ายุติธรรมด้วยเทคนิคกระแสเงินสดคิดลด visarut Sribunnak and Natchanont Komutputipong Pages 16 - 31    Download PDF  Article preview Cite Abstract Fair value measurement through discounted cash flows technique requires risk adjustments for its relevance and reliability. There are two approaches for the risk adjustments: (1) Discount rate adjustment technique, and (2) Expected present value technique. Means and Modes normally form a basis in determining the best estimate of expected cash flows. The choice of statistical measures rest on the nature of cash flows associated with the asset or liability and the objective of fair value measurement. Fair value measurement of liabilities shall take into account the non-performing risk arising from entity’s own credit risk. A decrease in a liability’s fair value, resulting in income in the face of financial difficulties and non-performing risk, is not an anomaly in itself. The non-performing risk arises from an unexpected decline in asset value, which is potentially absorbed by creditors. The creditor’s potential participation in the loss causes a decline in fair value of a liability and results in economic income for owners.
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The Effect of Operations and Currency Hedging Transactions of Listed Firm on the Relationship between Changes in Exchange Rate and Stock Return in Thailand Teerapat Deepentham and Pornanong Budsaratragoon Pages 32 - 55    Download PDF  Article preview Cite Abstract This research aims to examine the relationship between changes in exchange rate and stock returns in Thailand and also examine factors that affect this relationship. This research applies regression to examine the study. The Real effective exchange rate (REER) and USD-BAHT exchange rate are used as a proxy for exchange rate series. The closing prices of the Stock Exchange of Thailand (SET) and 244 listed companies are also used in this research. All data are covered the period from January, 2003 to December, 2011. The results indicate that there is a significant relation between contemporaneous stock returns and both REER and USD-BAHT exchange rate. While, lagged-exchange rate, there is a significant relation only on USD-BAHT. Moreover, the returns of firms that listed in SET are also significantly exposed to exchange-rate fluctuations. When we use REER as the dependent variable, market value is only one factor that affects exchange rate exposure, but this factor does not affect on USD-BATH exchange rate. However, the relationship between changes in exchange rate and stock returns is not influenced by foreign operation and the use of currency hedging transactions.
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Confidence Level of the Internal Control for Organization in Thailand Phattrapong Charoenkijjarukorn Pages 56 - 73    Download PDF  Article preview Cite Abstract This research aims to study the confidence level of the internal control for organization in Thailand. According to multiple regression analysis in internal control components, the control environment, the information & communication and the tracking & assessment all have influences on the confidence level of the internal control at the 95% statistically significant confidence level. Also, according to the Chi-Square test, the demography characteristic is related to the internal control at the 0.05 significant level. Moreover, the result of Independent t-test shows that the confidence level of listed companies is not significantly different with non-listed companies. The problems that have the most influence on the company’s confidence level are the environment of the assignment tracking control and the knowledge of staff required for the operation. The next secondary problems are the assessment tracking regarding a quality appraisal of internal control unit from external specialist and all control operations that have a written plan.
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Effects of Strategic Production Management on Competitive Advantage of Foods Industry Businesses in Thailand Chalermchai Utakarn Pages 74 - 85    Download PDF  Article preview Cite Abstract The purpose of this study was to the verify effects of strategic production management on competitive advantage of foods industry in Thailand. Strategic production management was independent variables affecting competitive advantage. As a research tool, questionnaires were mailed to the sample groups and the complete 136 of them were returned, The results of the study showed as following: 1) Strategic production management in term of production planning positively affected the competitive advantage in term of efficiency, quality, innovation and responsiveness perspective; 2) Strategic production management in term of inventory control positively affected the competitive advantage in term of efficiency and quality perspective; and 3) Strategic production management in term of maintenance positively affected the competitive advantage in term of efficiency, quality, innovation and responsiveness perspective. Moreover, the essence and suggestions of the study were already included within.