The Influence of Ownership Structure on Working Capital Management of Listed Companies in the Stock Exchange of Thailand

Abstract

This study employs a quantitative research design utilizing secondary data to analyze the influence of ownership structure on the working capital management of companies listed on the Stock Exchange of Thailand (SET). The initial sample comprised listed companies during the fiscal years 2023 to 2024, yielding a baseline of 1,268 observations from 634 firms. After applying explicit exclusion criteria specifically omitting financial institutions due to their distinct regulatory frameworks and operational guidelines, alongside companies with incomplete or deficient financial records totaling 227 observations the final analytical framework consisted of 1,041 observations. The empirical findings from multiple regression analysis indicate that all five dimensions of ownership structure namely institutional, government, foreign, individual, and family/executive ownership exert a statistically significant positive impact on the working capital to total assets ratio (R²=0.537, Adjusted R²=0.536, F-statistic=856.380)Notably, government ownership exhibits the most substantial positive influence on the ratio (β=0.076, p<.05), followed by foreign ownership (β=0.057, p<.10). These results demonstrate that under diverse corporate ownership structures, Thai listed companies tend to adopt conservative liquidity policies, maintaining a high proportion of current assets to mitigate liquidity risks and absorb economic volatility. This operational behavior strictly aligns with the risk prevention hypothesis and agency theory. Conclusively, these findings substantiate the risk prevention framework, indicating that corporate ownership characteristics serve as a pivotal strategic determinant of organizational liquidity policies, thereby fostering market confidence and long-term survival amidst highly uncertain macroeconomic conditions.