The Impact of Corporate Governance on the Earnings Stability of Companies Listed on the Stock Exchange of Thailand SET 100 Index
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Abstract
This research aims to investigate the impact of corporate governance on the earnings stability of listed companies included in the SET100 index of the Stock Exchange of Thailand. The study focuses on three dimensions of governance: Corporate Governance Disclosure (CGD), Environmental, Social, and Governance (ESG) scores, and Board Effectiveness Quality (BDEF). The sample consists of 220 observations derived from secondary data during the period of 2020–2023. Data were analyzed using multiple regression analysis. The findings reveal that both CGD and BDEF have a statistically significant positive influence on earnings stability at the 0.05 level. These results are consistent with Agency Theory and Stakeholder Theory, suggesting that effective governance mechanisms and board quality mitigate conflicts of interest and enhance sustainable earnings quality. Conversely, no statistically significant relationship was found for the ESG Score. This research underscores the importance of internal corporate governance mechanisms and board quality, offering vital insights for investors in assessing investment risks and returns.
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