Family Management and Financial Performance: Companies in the Stock Exchange of Thailand
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Abstract
This study aims to examine the relationship between family-owned management and firm performance in Thai-listed companies by analyzing the impact of various managerial components. The focus is on family-led management, including the proportion of family members serving on the board of directors, the presence of a family CEO, and the CEO's status as a top 10 shareholder. Firm performance is measured using return on equity (ROE), return on assets (ROA), and the firm’s value measured by Tobin’s Q. This study employs a quantitative research methodology using Pearson’s Correlation Analysis on data collected from 492 Thai-listed companies from 2019 to 2023, comprising 2,460 firm-year observations. The findings indicate a positive correlation between family board representation, family CEO tenure, and ROA. Additionally, companies where the CEO is among the top 10 shareholders exhibit a positive relationship with both ROE and ROA.
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