THE EFFECT OF CORPORATE GOVERNANCE ON MARKET VALUE OF EQUITY OF THAI LISTED COMPANIES

Abstract

The objective of this study was to examine the effect of corporate governance in the aspect of board responsibilities on market value of equity.  Secondary data were collected over the period of 2010-2014 from Form 56-1, financial statements, and annual reports of Thai listed companies in 1) agro & food industry, 2) property and construction, and 3) technology, totalling 161 companies with 805 data entries. The variables under investigation included board size, board composition, Chief executive director/Chair duality, board committees, institutional shareholding, shareholding of board members, board remuneration, and market value of equity. This study found that board size, board composition, institutional shareholding, and board remuneration had a positive effect on market value of equity at a statistical significance level of 0.05. Meanwhile, shareholding of board members had a negative effect on market value of equity at a statistical significance level of 0.05. The rest of the variables had no effect on market value of equity.