The influence of corporate governance scores on stock prices and profitability of listed companies on the stock exchange of Thailand

Abstract

          In the study of the Influence of corporate governance scores on stock prices and profitability of companies listed on the Stock Exchange of Thailand, the objectives were (1) to explore corporate governance scores and business value of companies listed on the Stock Exchange of Thailand and (2) study the relationship between corporate governance scores and stock prices and profitability, by using analytical methods Descriptive statistics and inferential statistical analysis, including Pearson Correlation Analysis, hypothesis testing Simple Regression Analysis, the scope of this research included studying the performance of companies that have been operating for a period of 5 years from 2017 to 2021, the sample group used in the study was 413 companies.

          The results of the study found that there was a relationship between the Corporate Governance Scores and Stock Prices and profitability, including Net Profit and Earnings Per Share. Descriptive statistical analysis and inferential statistical analysis using multiple regression analysis, It can be concluded that A corporate governance score at level 5 had a negative influence on Stock Prices and Earnings Per Share however, the governance score at level 5  had no influence on Net Profit, similarly with a corporate governance score at level 4 had a positive influence on Stock Prices and Earnings Per Share but governance score at level 4 had no influence on Net Profit and a corporate governance score at level 3 had no influence on Stock Prices, Net Profits, and Earnings Per Share Therefore, each level of corporate governance score can be used to assess the risk of securities, the company executives can used this study results as guidelines for improving corporate governance for good long-term operating results and investors can used them effectively in making investment decisions.