The Impact of Committees on Financial Performance of The Listed Companies in the Stock Exchange of Thailand

Abstract

The role of committees is corporate governance mechanism so the firm has a better financial performance. This research aimed to examine the impact of the role of committees on financial performance of the listed companies in the Stock Exchange of Thailand from 2013 to 2015. The results indicated that the role of committees was measured by the proportion of independent director, board size and the number of board meetings negatively significantly related to the market value which was measured by Tobin’s Q. Furthermore, firm size, debt to equity ratio and firm risk positively significantly related to the market value. Even though the relation between the role of committees and financial performance was different from agency theory, this result confirmed the importance of the role of committees.