Find out the influence of financial factors on trading prices in QE era: A case of SET

Quantitative easing (QE) has emerged as an unconventional monetary policy to increase the money supply and encourage investment all around the world. Specific to Thailand, this leads to the Stock Exchange of Thailand index (SET) rising sharply. Given positive tangible and psychological factors, traders' decisions may not rely on indicators, which are usually referred to in a normal situation. Henceforth, this paper presents an original investigation to disclose decision-support indicators influencing stock prices, based on publicly accessible data of many companies that collected by SET. To accomplish this, regression analysis through structural equation modeling is exploited to reveal a relationship and its significance between common (and non-biased to order of magnitude) variables to the trading price. These findings are very useful in understanding and preparing for the reflex if QE is terminated in the near future. In our results, debt-to-equity (DE) ratio is the strongest predictor of stock trading price.