BOARD OF DIRECTOR AND INNOVATION WITH PERFORMANCE OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND
Keywords:
Board of Director, Innovations, Performance, Thailand Sustainability InvestAbstract
Innovation is considered as an important mechanism for driving the economy. Therefore, creating innovation is essential for every organization. To create the most useful innovation, board of director’s role in governance mechanism is a key factor. This research aims to examine the influence of board of directors and innovation towards performance of listed companies in the stock exchange of Thailand. This study applies Structural Equation Model (SEM) as an analysis technique and uses 154 Thai listed companies which are in Thailand Sustainability Investment (THSI) during 2015 to 2017 as study’s samples. The empirical results indicate a positive and significant relationship between board of director characteristics in terms of board size, director compensation and board meeting and firm performance through the influence of innovation. However, there is no relationship between board member duality and firm performance through the influence of innovation. Further study should consider the use of different research methodology such as qualitative research which may provide useful comparative. Addition information for that research results increase investor confidence that can be used to make future decisions.
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