Corporate Governance, Investment Efficiency: Listed Companies in Market for Alternative Investment - MAI
Keywords:
Corporate Governance, Investment Efficiency, Market for Alternative InvestmentAbstract
This research aimed to analyze corporate governance which influences the investment efficiency of listed companies in the Market for Alternative Investment. The sample group consisted of 91 companies which were the listed companies in the Market for Alternative Investment which had complete information from year 2014 - 2018. These companies were divided into 7 groups which were agriculture and food industry group, consumer product group, technology Industry group, industrial product group, real estate and construction Industry group, resources industry group, and the service industry group. The variables used in the study were corporate governance which were divided into 4 aspects including; 1) the characteristics of the board 2) the benefits 3) the number of sets of the board that was greater than the requirements and, 4) the audit committee. The efficiency of investment was divided into 3 aspects which were 1) return, 2) growth and, 3) investment level. The results of the study revealed that 1) corporate governance regarding the characteristics of the committee and the audit committee had a negative effect on investment efficiency in term of the return aspect while the return on corporate governance had a positive influence on investment efficiency in term of the return aspect, 2) corporate governance regarding the characteristics of the committee and the audit committee had a positive effect on investment efficiency in term of growth aspect, and 3) governance regarding benefits had a positive effect on investment efficiency in term of investment levels aspect.
References
Bizjak, J. M., Brickley, J. A., and Coles, J. L. Stock-based Incentive Compensation and Investment Behavior. Journal of Accounting and Economics. 19, (1993): 349-372.
Bloomfield, S. Theory and Practice of Corporate Governance: An Integrated Approach. Cambridge: Cambridge University Press, 2013.
Chen, I. J., and Chen, S. S. Corporate Governance and Investment Efficiency of Diversified Firms: Evidence from Corporate Asset Purchases. SSRN Electronic Journal, (February 2008): DOI: 10.2139 / ssrn.1099234.
Chen, N., Sung, HC, and Yang, J. Ownership structure, corporate governance and investment efficiency of Chinese listed firms. Pacific Accounting Review. 29, 3 (2017): 266-282.
Chen, S., and Chen, I. Corporate Governance and Capital Allocations of Diversified Firms. Journal of Banking & Finance. 36, (2012): 395-409.
Fazzari, SM, Hubbard, GR, adn Petersen, BC Investment-Cash Flow Sensitivities Are Useful: A Comment on Kaplan and Zingales. Quarterly Journal of Economics. 115, 2 (2000): 695-705.
Healy, P., adn Palepu, K. Information Asymmetry, Corporate Disclosure, and the Capital Markets: a Review of the Empirical Disclosure Literature. Journal of Accounting and Economics. 31 (2001): 405-444.
Ji, A. E. The Impact of Board Size on Firm-Level Capital Investment Efficiency. International Journal of Economics and Finance. 8, 10 (2016): 110-120.
Kaseamsap, W. The relationship between corporate governance and performance of the Company are listed on the Stock Exchange of Thailand. Bangkok: Thammasat University, 2011.
Lee, M. T. Corporate Social Responsibility, Corporate Governance, and Investment Efficiency: Evidence from an Asian Emerging Market. the 7th International Conference of The Japanese Accounting Review (TJAR) to be held on 7 January 2017 at.Rokkodai Campus of Kobe University in Japan: 1-44.
Lin, C., Ma, Y., and Su, D. Corporate Governance, and Investment Efficiency: Evidence from China's Publicly Listed Firms. Managerial and Decision Economics. 30, (2009): 193-209.
McColgan P., Agency theory and corporate governance: a review of the literature from a UK perspective. Department of Accounting and Finance, University of Strathclyde, Glasgow, 2001.
Modigliani, F., adn Miller, M. H. The Cost of Capital, Corporation Finance and the Theory of Investment. The American Economic Review. 48, 3 (1958): 261-297.
Prakobsaeng, K. and Petchchedchoo, P. Corporate Governance Mechanisms, Political Connection and Earnings Quality, SUTHIPARITHAT 31, 99 (2017): 1-15.
Rajan, R., Servaes, H., adn Zingales, L. The Cost of Diversity: The Diversification Discount and Inefficient Investment. Journal of Finance. 55 (2000): 35-80.
Rashed, A. S, adn Rahman, E. M. A. Board Characteristics and Investment Efficiency: Evidence from Egypt. Proceedings of 34th International Business Research Conference to be held on 4 - 5 April 2016 at Imperial College, London, UK: 1-10.
Richardson, S. A. Over-investment of free cash flow. Review of accounting studies. 11, 2-3 (2006): 159-189.
Scharfstein, D., and Stein, J. The Dark Side of Internal Capital Markets: Divisional Rent-Seeking and Inefficient Investment. Journal of Finance. 55, (2000): 2537-2564.
Stein, J. Agency, Information, and Corporate Investment. In George Constantinides, Milton Harris, and Rene' Stulz, (eds), Handbook of the Economics of Finance Amsterdam: Elsevier Science, 2003.
The Stock Exchange of Thailand. Good corporate governance. (online) 2019 (cited on 30 September 2019) from https://www.set.or.th/sustainable_dev/th/cg/responsibility_p1.html
The Stock Exchange of Thailand. Grouping of industry and business category. (Online) 2017. (cited on November 26, 2017), from https://www.set.or.th/th /regulations/ simplified_regulations/ industry_sector_p1.html.
Wadhanapatee, S. The Impact of US Monetary Policy Transmission on Security Prices in the Stock Exchange of Thailand: Tests of Market Efficiency. Bangkok: Dhurakij Pundit University, 2012.
Downloads
Published
How to Cite
Issue
Section
License
Every article is peer-reviewed for academic correctness by at least two external qualified experts. The opinions in the Journal of Graduate School, Pitchayatat, Ubon Ratchathani Rajabhat University (Humanities and Social Sciences) belong to the authors; not belong to the Publisher. Thus, Graduate School of Ubon Ratchathani Rajabhat University cannot to be held responsible for them. The articles in this journal are protected by the copyright of Thailand. No part of each issue may be reproduced for dissemination without written permission from the publisher.
