Effect of the Board of Directors’ Characteristics on Corporate Governance
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Abstract
The purpose of this research is to examine which factors from the board of directors' characteristics encourage results on good corporate governance. Data was collected from 508 companies listed on the Stock Exchange of Thailand from yearly reports and form 56-1. The independent variables include women on the board, age, postgraduate, education field, political connections, board tenure, and board compensation, while corporate governance, as measured by the corporate governance score, is the dependent variable. The study is based on the Upper Echelon Theory and uses multiple regression analysis for hypothesis testing. The results of the study show that women on the board, board members who graduated in the engineering and business fields, and compensation, have a positive effect on corporate governance score. The finding of the research can be used as a guideline for selecting people to be on the board of directors in the context of gender, field of graduation, compensation, and have the basis of improving their work with good corporate governance.
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