The Influence of Profitability Free Cash Flow and Capital Structure on Economic Value Added and Market Value Added of Companies Listed on The Market for Alternative Investment (MAI) in Thailand
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Abstract
This research article aimed to 1) study the profitability, free cash flow, capital structure, Economic Value Added, and Market Value Added of companies listed on the Market for Alternative Investment; 2) examine the influence of profitability, free cash flow, and capital structure on Economic Value Added; and 3) examine the influence of profitability, free cash flow, and capital structure on Market Value Added. The study used secondary data from financial statements, annual reports, annual registration statements, and stock price data of companies listed on the Market for Alternative Investment (MAI) in Thailand during 2021–2025. The sample consisted of 458 firm-year observations selected by purposive sampling. The research instrument used for data collection was a data collection form. The statistics used for data analysis included Descriptive Statistics, Pearson Correlation, Multicollinearity Testing, and Multiple Regression Analysis. The results revealed that 1) the sample companies had a negative average Economic Value Added, while the average Market Value Added was positive, and the profitability variables also had positive average values; 2) free cash flow, return on equity, and return on assets had a positive influence on Economic Value Added, whereas debt-to-equity ratio had a negative influence, while gross profit margin had no statistically significant influence; and 3) free cash flow, debt-to-equity ratio, and return on assets had a positive influence on Market Value Added, while gross profit margin and return on equity had no statistically significant influence.
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References
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