Corporate governance affects the firm performance and market performance: empirical study of companies in the resource industry sector listed on the Stock Exchange of Thailand

Abstract

This research aims to examine the influence of corporate governance on (1) the firm performance and (2) the market performance of companies in the resource industry sector listed on the Stock Exchange of Thailand. The study employed a quantitative research design using secondary data collected from 52 listed companies in the resource industry, resulting in 260 observations over a five-year period. Data were obtained from the websites of the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET). Descriptive statistics—such as frequency, percentage, mean, and standard deviation— Correlation Coefficient Analysis and multiple regression analysis were used to analyze the data. The results reveal that corporate governance has a statistically significant impact on firm performance, particularly in terms of return on assets (ROA) and net profit margin (NPM). Moreover, corporate governance significantly influences market performance, specifically in terms of the market-to-book (M/B) ratio, price-to-earnings (P/E) ratio, and revenue growth rate. These findings highlight the critical role of effective corporate governance mechanisms in enhancing both operational and market efficiency in the resource industry sector.