Management Information Systems' Impact onInvestment andFinancial Decisions inThe Banking Sector

Abstract

The purpose of this study would be whether MIS risks and investment efficiency have an impact on profit persistence in Bangkok, Thailand industrial companies, and if so, whether this varies between different industrial companies in Bangkok, Thailand. The descriptive analytical method is used in this study, and the hypothesis of this paper is investigated using a simple linear regression model. This study employs a sample of 41 companies drawn from a population of 54 companies listed on the Thai Stock Exchange's industrial sector between 2007 and 2021. The findings revealed that financial risks – as measured by liquidity ratios – had no statistically significant impact on profit persistence in the short term. The study also found that financial risks – as measured by debt ratio – had no statistically significant impact on profit persistence. This study also found that asset efficiency – as measured by total asset turnover – had no statistically significant impact on profit persistence. Whereas the study discovered a statistically significant difference in profit persistence between industrial companies at a level of (0.01). The findings of this paper can help industrial companies improve their short-term profit persistence. This paper is regarded as the first to investigate the profitability persistence of Bangkok, Thailand industrial firms. The study produced some recommendations, one of which is that authorities should raise awareness about profit persistence in the long versus short run. Companies should be required to report on profit persistence in their governance reports to assist investors and other stakeholders in determining a company's ability to maintain current profit persistence.