Patterns of Cash Flows Information and Its Relationship with Stock Prices of the Listed Companies in Thailand
Keywords:
Cash Flow Patterns, Net Cash Flows, Operating Activities, Investing Activities, Financing Activities, Stock PriceAbstract
This study explores patterns of cash flows information of the Thai Listed Companies during 2017-2022. The sample was divided into eight groups based on the signs on cash flows from each activity and assigned the levels of industry life cycle. This study finds that the pattern of the largest group is in shake-out stage. Mostly, the results show positive relationship between net cash flows from operations and stock prices in various patterns. The results also show positive relationship between net cash flows from investing activities and stock prices in the shake-out stage. In the group with negative net cash flows from financing activities, and positive net cash flows from operation, net cash flows from financing activities has negative relationship with stock prices, while the rest of the sample shows positive relationship. This study concludes that cash flows information should not be interpreted from the sign of each item separately. It should be used integratedly and holistically.
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