ASSESSMENT OF GOOD CORPORATE GOVERNANCE AND FIRM VALUE OF THE LISTED COMPANIES ON THE STOCK EXCHANGE OF THAILAND

Abstract

          The purpose of this article is 1) To study the correlation between Assessment of corporate governance rating (CGR) and Firm value by using Tobin's Q of the listed companies in the Stock Exchange of Thailand (2) To compare the differences between the group of companies that the better CGR scores and the lower scores with the ability of the firms value of the business by using Tobin's Q of the listed companies in the Stock Exchange of Thailand. Quantitative research emphasizes descriptive research and uses inference analysis by using Partial Correlation Statistics in Second Order Partial Correlation. The data was collected from SET-SMART database of 180 companies during the years 2013 -2017. The results showed that the evaluation score of corporate governance has a positive relationship with the Firm Value (Tobin’s Q). Were also found a group of companies with a good CG assessment scores better than a lower CG scores, and has found the firms value (Tobin’s Q) is not difference. By comparing the business average value ratio (Tobin's Q), it is found that a group of companies with a higher level of corporate governance rating will have a higher average operating performance than a group of companies that have a corporate governance rating. Below good level Indicates the ability to perform asset activities the company creates management stability, reflecting value and efficiency. Or the ability of shareholders to manage the business which is the main factor that shareholders or investors give importance to when considering investment.