Title: Investigating the determinants of Thai manufacturing public firms' performance using an integration of multiple linear regression and hierarchical linear modelling

Authors: Janthorn Sinthupundaja; Navee Chiadamrong

Addresses: School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology (SIIT), Thammasat University, Pathum Thani, 12121, Thailand ' School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology (SIIT), Thammasat University, Pathum Thani, 12121, Thailand

Abstract: This study shows the empirical results of analysing the determinants of firm performance using an integration of multiple linear regression (MLR) and hierarchical linear modelling (HLM). MLR analysis is introduced to identify significant factors, and HLM is used to assess the importance of time, firm, and industry effects on the firm performance. The study collected these nested data from Thai manufacturing public firms listed in the Stock Exchange of Thailand (SET). Overall, the results from MLR show that most factors of interest (firm characteristics, level of leverage and liquidity) are the significant determinants of the firm performance while the results from HLM showed that most of the variances in firm performance is caused by different times and firms, but not the industries. Integrating MLR and HLM helps to identify the multilevel determinants and enhances each other's ability to overcome some weaknesses that might exist in each method. The obtained results have implications for the strategic management fields' goal of understanding multilevel determinants of firm performance over time.

Keywords: firm performance; multiple linear regression; MLR; hierarchical linear modelling; HLM; Thailand; manufacturing industry; public firms; firm characteristics; leverage level; liquidity; strategic management.

DOI: 10.1504/IJBEX.2017.081430

International Journal of Business Excellence, 2017 Vol.11 No.2, pp.162 - 184

Received: 19 Feb 2015
Accepted: 02 May 2015
Published online: 08 Jan 2017 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article