The Impact of Corporate Governance Scores on the Financial Performance of Companies Listed on the Stock Exchange of Thailand
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Abstract
This research examines the impact of corporate governance on the financial performance of listed companies on the Stock Exchange of Thailand. The sample includes 188 companies with corporate governance scores ranging from excellent to below good, collected from annual filings, financial statements, and annual reports between 2008 and 2017. Quantitative analysis was conducted using percentage calculations and stepwise multiple linear regression to test hypotheses. The findings revealed that 69 companies (36.6%) had very good governance scores, 59 companies (31.4%) had below-good scores, 40 companies (21.1%) achieved excellent scores, and 20 companies (10.9%) were rated as good. Hypothesis testing indicated that corporate governance scores, the independence of the board chair, the absence of overlapping executive roles and the board size significantly influenced financial performance at the 0.01 significance level. However, the proportion of independent directors did not significantly affect financial performance.
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