Corporate Governance Factors Influencing Firm Performance of Listed Company on the Stock Exchange of Thailand

Abstract

This article aims to investigate corporate governance factors that influence the performance in terms of return on equity ratio, return on total assets ratio, net profit margin ratio, and firm value of firms listed on the Stock Exchange of Thailand (SET 100). We conducted a quantitative study, collecting data from the annual registration statement (Form 56-1) and the Securities and Exchange Commission of Thailand's information system, focusing on 493 companies from 2019 to 2022. Statistics used for data analysis include maximum, minimum, mean, standard deviation, and multiple regression analysis. The research findings revealed that the size of the board of directors influences firm performance in terms of the return on equity ratio, the proportion of shareholding by the board of directors influences firm performance in terms of the return on total assets ratio, and the proportion of independent directors influences firm performance in terms of the net profit margin ratio. However, corporate governance factors have no effect on the firm’s performance in terms of firm values listed on the Stock Exchange of Thailand.