Accounting Characteristics and Performance of the Thai Value and Growth Stocks
Asst. Prof. Kanogporn Narktabtee

Abstract
This study examinesthe accounting characteristics of value and growth stock firms in the Thai capital market and examines whether there is consistency between the value perceived by investors and the accounting performances. This study uses price-to-earnings ratios (P/E) and price-to-book value ratios (P/BV) to identify the value and growth stocks andcompares theperformance of the two groups. The performance measures include earnings and cash flows performance, profitability ratios, and solvency ratio. Based on the P/BV classification, growth stock firms are firms with relatively higher operating cash inflows and higher cash outflows from investing activities. Growth stock firms are more efficient in asset utilization, more profitable, better utilize their invested capital and more aggressive in using debt financing. These characteristics are in line with the fundamental analysis. However, the P/E portfolios provide different results. Whether these two ratios capture different phenomenon is therefore an issue needed to bereconciled.

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