Factors affecting PTT stock price and effects from government policy

Abstract

PTT is one of the important listed companies on the Stock Exchange of Thailand, and PTT is Thailand’s number one energy and petrochemical business. This study intends to examine the impact of macroeconomics factors and government policy on the PTT stock price. The first part examines the macroeconomic factors, which are interest rate, consumer price index, exchange rate, and gold price, using the data from 2010 to 2020. The ordinary least square between PTT stock price and all variables show that PTT stock price and only consumer price index are positively related. If the consumer price index or price level of goods and services increases, PTT stock price increases. In contrast, interest rate and exchange rate and gold price are negatively related to PTT stock price, which means that if interest rate or exchange rate or gold price increases, PTT stock price decreases and vice versa. The second part examines the impact of the corporate income tax reduction in 2012. However, based on financial performance such as ROA, debt to equity, net profit margin, EBITDA, and dividend from 2009 to 2015, I find insufficient evidence to conclude that the policy impacts the PTT stock price.