The Relationship between Profitability and Independent Director Compensation on Sustainable Growth of Listed Companies in the Technology Sector of the Stock Exchange of Thailand
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Abstract
Currently, technology industry registered companies in the Stock Exchange of Thailand (SET) are leading in innovation and technology development, significantly impacting both the economy and society in Thailand. A study titled "The Relationship between Profitability and Board Compensation of Independent Directors on Sustainable Growth Rate of Technology Industry Registered Companies in the Stock Exchange of Thailand" is a quantitative research aimed at examining the correlation between profitability and board compensation of independent directors on the sustainable growth rate of these companies. The study gathered data from financial statements and annual reports (Form 56-1) of 35 technology industry companies registered in the SET, spanning from the fiscal year 2020 to 2023, totaling 140 samples. The independent variables studied included profitability metrics (return on equity, operating profit margin, pre-tax profit margin, and net profit margin) and board compensation (meeting fees, annual remuneration, and bonuses), while the dependent variable was sustainable growth rate. Key performance indicators used to evaluate company capabilities included statistical analysis and simple regression analysis.
The research findings indicate a statistically significant positive relationship between initial profitability ratios and the sustainable growth rate of technology industry companies registered in the Stock Exchange of Thailand. However, board compensation for independent directors showed no statistically significant relationship with the sustainable growth rate of these companies.
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