Good Corporate Governance and Tax Planning of Companies Listed on the Stock Exchange of Thailand, SETESG Index Group

Abstract

This research examines Good Corporate Governance and Tax Planning of Companies Listed on the Stock Exchange of Thailand, SETESG Index Group The objectives of this study are: 1) to investigate the context of corporate governance and tax planning of listed companies in the SETESG Index, and 2) to analyze the relationship between corporate governance mechanisms and tax planning strategies of these firms. By collecting financial report information from financial statements Certified Public Accountant's Report and 56-1 one report from the company website and the Stock Exchange of Thailand website. The sample group used in the study has complete information, a total of 99 companies collected data between 2020 and 2024 for statistical analysis. Descriptive includes mean standard deviation maximum and minimum, and inferential statistical analysis, including analysis of Pearson Correlations and analysis of Multiple Regression. 

The findings revealed that 

1) Companies listed on the Stock Exchange of Thailand, SETESG index have a strong governance structure through checks and balances mechanisms and proactive board work. This results in rigorous internal control systems, facilitating tax planning that emphasizes efficiency and transparency. Focusing on the management of legally compliant tax benefits to create sustainable value for the organization.

2) Good corporate governance does not have a statistically significant relationship with tax planning as measured by the effective tax rate (ETR). However, there is a significant relationship with tax planning as measured by the tax-to-total-asset ratio (TAX/ASSET). It was found that the frequency of board meetings has a positive relationship with efficient tax planning, while the size of the company has an inverse relationship, meaning that larger companies tend. to have more efficient tax planning. Other variables, such as the independence of the board chairman, the size of the board of directors, the frequency of audit committee meetings, and financial risk, do not show a significant relationship with tax planning.