The Relationship between Good Corporate Governance and Profitability and the Stock Price of Listed Companies on the Stock Exchange of Thailand

Abstract

The objectives of this study were to study investigate the relationship between good corporate governance and profitability and stock market prices of listed companies on the Stock Exchange of Thailand. Good corporate governance is the corporate governance score and board size. The profitability is net profit ratio and return on assets. with stock market prices the sample group is the corporate governance survey of listed companies on the Stock Exchange of Thailand from 2019 to 2021, totaling 297 companies, 891 samples. The data were analyzed using descriptive statistics and inferential statistics for hypothesis testing. The results showed that the board size of directors and the return on assets had a significant positive correlation at 0.01 level with the stock market price. The corporate governance score had a significant negative correlation at 0.01 level with the stock market price and net profit ratios is not correlated with the stock market prices. This means that adequate board management, operational flexibility and quality asset management result in higher securities prices, which helps investors consider investing in the stock market.