How the minimum wage change affect to the revenue of the property development companies in Thailand?

Abstract

This paper has a purpose to test the relationship between the minimum wage change and the revenue of property development companies that join the stock market in Thailand for more than 10 years. Moreover, this paper still has an investigation for proving the result of testing. This paper used the revenue property development companies which join the stock market in Thailand for more than 10 years which the data which be used from 2010 to 2019. The Thai annual average minimum wage information is gathered from the macroeconomic website from 2010 to 2019. The relationship between the minimum wage and the revenue of property development companies is tested by the panel regression model follow the study of Sufian and Kamarudin (2015). The result of this paper indicates that the minimum wage change has not affected or a relationship with the revenue of the property development companies in Thailand. Moreover, from proving the result, it shows that the revenue of property development companies was stable by the increase of renting revenue from the consumer expenditure increasing and the effect of the minimum wage is not efficient enough to affect the revenue. Furthermore, the companies in the real estate industry have the efficient skills for revenue & profit-making. Thus, the minimum wage change has not affected or a relationship with the revenue of the property development companies in Thailand. Due to limited time, the data is limited too. The scope of the data has only the property development companies. For improving, this study should collect all of the companies in the real estate industry for testing the industry which has more efficiency and scale. Moreover, the years of data is the limited scale because the companies which are joined the stock market of Thailand less than 10 years will be deducted for suitable with testing a panel regression.