The Moderating Effect of Corporate Governance Scores on the Relationship between Book Value, Earning and Stock Prices: The Stock Exchange of Thailand
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Abstract
Abstract
The objective of this study was to study the moderating effect of corporate governance scores on the relationship between book value, earnings and stock prices of listed companies on the Stock Exchange of Thailand. By collecting 1,274 secondary data of listed companies from SETSMART database during 2017-2019, data were analyzed using descriptive statistics, correlation statistics, and multiple regression analysis were used to test the research hypothesis.
The result of this study found that the book value per share, earnings per share were positively correlated with stock prices. When the corporate governance score is taken as the moderator variable, the book value per share and net profit per share in testing the relationship with stock prices, it was found that the book value per share and earnings per share have the ability to better explain the stock prices. It can explain the stock prices 48.40% at a 99% confidence level, indicating that corporate governance is the driving force behind the change in book value per share. And earnings per share to be able to better explain stock prices.
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