Impact of Business Nature on Corporate Governance Report through a Degree of Independence of Board of Directors: A Case Study of Listed Companies in the Stock Exchange of Thailand

Abstract

The objective of this research is to develop causal relationship model of the impact of business nature on corporate governance report through a degree of independence of board of directors by using a case study of listed companies in Stock Exchange of Thailand (SET). This model adopted three kinds of latent variables and utilized Form 56-1 data and notes to financial statement year 2016 of 175 listed companies in SET by using a statistical method of descriptive analysis, causal relationship model and LISREL 8.80 Student Edition Program. The results show that the hypothetical model and the empirical model are in harmony. There is the positively direct impact of nature of business (NTB) on independence of the Board of Directors (IBD) with a statistical significance of 0.01 and a coefficient value of 1.17** and there is the positively direct impact of IBD on Corporate Governance Report (CGR) with a statistical significance of 0.01 and a coefficient value of 1.01**.