CORPORATE GOVERNANCE EFFECTS ON FINANCIAL PERFORMANCE OF THE LISTED COMPANIES ON THE STOCK EXCHANGE OF THAILAND

Abstract

This research aims to study the corporate governance effects on financial performance of the listed companies on the Stock Exchange of Thailand. The sample consisted of 188 companies with the corporate governance scores from excellence to below good level, which the data was collected from annual data entry form, financial statements and annual report of the listed companies in the Stock Exchange of Thailand during 2008-2017. The analysis of data and statistics used in quantitative analysis was included the percentage and the multiple regression analysis was used to test the hypotheses. The results of the study show that the companies with very good score on the corporate governance were 69 companies or 36.60%, the companies with below good level score were 59 companies or 31.40%, the companies with excellence score were 40 companies or 21.10%, and the companies with good score were 20 companies or 10.90%. The hypothesis testing of the corporate governance score (Sig. 14.694**), the independence of the chairman (Sig. 16.297**), the senior executives without merging the position (Sig. 12.497**), and the size of the board of directors (Sig 5.176**) are all affect the financial performance with the statistical significance at 0.01. However, the proportion of independent directors does not affect the financial performance.