INCREASING FINANCIAL HEALTH STABILITY FOR LOGISTICS COMPANIES IN THAILAND

Abstract

The objectives of this paper are: 1) to identify the factors that determine long-term financial stability, and 2) to develop a model of long-term financial health for logistics companies in Thailand. While many studies have referred to financial ratios as factors affecting financial health, only a few non-financial ratios such as age and size have been mentioned. This paper considers both the financial and non-financial ratios that affect the financial performance of logistics companies in Thailand. The study has covered some interesting non-financial ratios such as the nationality of shareholders, type of networking, growth rate (consisting of sales growth rate/profit growth rate/asset growth rate/liability growth rate) and the variable of growth rates. The sample consists of 110 logistics companies in Thailand enlisted from the Department of International Trade Promotion Ministry of Commerce. Multiple discriminant analysis (MDA) was used as the research instrument. MDA by SPSS was applied to analyze the 5-year data from 2009-2013. Multimonial logistic regression analysis (MLRA) was another tool applied after getting the significant variables from MDA. There are two cases in the study consisting of Case 1 that applied all variables at the same time, and Case 2 applied financial variables and non-financial variables separately. The results that show the five major robust factors that impact financial health are RETA, BVETL, Size, Nationality of Shareholders and No. of Shareholders, while the minor factors are CFD, Age and Type of Network.The output of this research together with the appropriate model could be used to increase the financial health of logistics companies in Thailand.