Corporate Governance Influences Firm Value for Companies Listed on The Stock Exchange of Thailand
Keywords:
Corporate Governance, Return on Asset, Stock Exchange of ThailandAbstract
This study aims to examine the influence of corporate governance on the firm value of companies listed on the Stock Exchange of Thailand (SET). The sample consists of 436 listed companies between 2020 and 2023, analyzed using multiple regression analysis. The results indicate that certain factors positively influence the return on assets (ROA). The findings reveal that the proportion of the top five shareholders, the proportion of the audit committee, and the corporate governance score have a positive relationship with return on assets (ROA). Conversely, the proportion of institutional shareholders and the degree of board independence are negatively associated with ROA. These findings suggest that effective corporate governance builds trust in a company. When companies have a more stronger presence of five major shareholders, a well-represented audit committee, and high governance scores, As a result of these factors, the firm’s value tends to increase. Such insights provide practical implications for shareholders and other stakeholders in evaluating corporate performance and making more effective investment decisions.
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