Relationship of Corporate Governance and Liquidity Affecting Stock Valuation of Industrials Group Listed on the Stock Exchange of Thailand

Abstract

         This research aimed to 1) study the relationship between corporate governance affecting stock valuation of the industrial group listed on the Stock Exchange of Thailand, and 2) study the relationship between liquidity affecting stock valuation of the industrial group listed on the Stock Exchange of Thailand. This was a quantitative study, using a sample from industrial group companies listed on the Stock Exchange of Thailand from 2020-2022, totaling 264 data points. Statistical analysis was conducted using descriptive statistics, correlation coefficient analysis, and multiple linear regression analysis.
        The results of the research found that 1) Corporate governance, such as the quality assessment score of the annual general meeting, had a statistically significant positive correlation with the market price to earnings per share ratio. The proportion of non-executive directors had a statistically significant positive correlation with the market price to earnings per share to growth per share ratio. The corporate governance assessment level had a statistically significant positive correlation with the market price to book value per share ratio. 2) Liquidity, including the current ratio, had a statistically significant negative correlation with the market price to earnings per share ratio. The inventory turnover ratio had a statistically significant positive correlation with the market price to earnings per share ratio. The current ratio had a statistically significant negative correlation with the market price to book value per share ratio. The inventory turnover ratio had a statistically significant positive correlation with the market price to book value per share ratio.