THE INFLUENCE OF CORPORATE GOVERNANCE AFFECTING COMPETITIVE ADVANTAGE AND PERFORMANCE OF THE LISTED COMPANIES OF THE STOCK EXCHANGE OF THAILAND

Abstract

          The objectives of this research article were to examine the effect of corporate governance on competitive advantage and overall performance of the listed companies of the Stock Exchange of Thailand and to validate the consistency of a causal relationship model of the corporate governance that affects competitive advantage and overall performance of the listed companies of the Stock Exchange of Thailand. Research methodology is a quantitative research. The sample was 409 companies listed on the Stock Exchange of Thailand. The data were collected from annual financial reports (56 - 1 Form) and annual reports. The collected data were analyzed by using the Multiple Indicators and Multiple Causes Model. The results indicated that 1) corporate governance (CG) had a direct positive effect on competitive advantage (CA) with factor loading equal to 0.717 and a direct negative impact on overall performance (OP) with factor loading equal to - 0.5333. Moreover, corporate governance (CG) had an indirect negative effect on overall performance (OP) with factor loading equal to - 0.004 through the variable of competitive advantage (CA), and 2) the validation of a causal relationship model of the corporate governance that affects competitive advantage and performance of the listed companies of the Stock Exchange of Thailand indicated that the research hypothesis was consistent with empirical data and was able to be clearly answered which can be summarized in a form of a model as follows: OP = χ² = 9.568, df = 7, χ²/df = 1.367, p - value = 0.129, CFI = 0.998, GFI = 0.973, AGFI = 0.934, RMSEA = 0.019, SRMR = 0.038.