DETERMINANTS OF THE MARKET VALUE OF LISTED FIRMS IN THE SERVICES SECTOR: A CASE OF THAILAND

Abstract

The study examines the determinants of firms’ market value which contribute to the continued growth of services sector in Thailand. This study uses data from the stock exchange of Thailand for the period of 2003 to 2019 to estimate the fixed effect model of the determinants. Accounting variables that include book value, return on assets, and size positively determine the market value. With respect to non-accounting variables, the firm's value depends positively on productivity but negatively on capital intensity. Furthermore, the results indicate a significant rise of the firms' values as a result of the advancement in the technology of information and telecommunication that has enormously accelerated after 2009.