THE IMPACT OF RETURN ON ASSETS AND RETURN ON EQUITY ON EARNING PER SHARE AND PRICE-TO-BOOK VALUE OF LISTED COMPANIES ON THE STOCK EXCHANGE OF THAILAND

This study investigates the effects of financial performance on firm value among firms listed on the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI). Specifically, the study examines the mediating role of Earnings per Share (EPS) and the moderating role of market segmentation in the relationships between Return on Assets (ROA), Return on Equity (ROE), and Price-to-Book Value (PBV). Grounded in signaling theory, the study proposes that profitability indicators function as financial signals that influence investor interpretation and market valuation across different market conditions. Secondary panel data from 781 non-financial firms listed on the Thai stock market during 2018–2025 were analyzed using regression-based conditional process analysis with PROCESS Macro. Bootstrapping with 5,000 resamples was employed to test mediation effects, while moderation effects were examined through interaction term analysis. The results indicate that both ROA and ROE positively influence EPS and PBV, with ROE exhibiting stronger effects than ROA. EPS was found to significantly mediate the relationships between financial performance and firm value. In addition, market segmentation significantly moderated the relationships among profitability, earnings performance, and firm value, with stronger effects observed among SET firms compared to MAI firms. The findings suggest that investors interpret financial signals differently across market segments. This study contributes to the corporate finance literature by integrating mediation and moderation mechanisms into a unified framework and by providing context-specific evidence from an emerging market setting. The findings further extend signaling theory by demonstrating that the effectiveness of profitability signals depends substantially on market conditions and institutional contexts.