The Relationship between Ownership Structure, Board Composition and Corporate Characteristics on Financial Performance of Listed Companies in the Stock Exchange of

Main Article Content

Muttanachai Suttipun

Abstract

The main objective of this study is to test the influence of ownership structure, board composition, and corporate characteristics on corporate financial performance of listed companies in the Stock Exchange of Thailand during 2012 to 2015. Population are listed companies in the Stock Exchange of Thailand during 2012 to 2015. By simple random sampling, 322 listed companies are used as the samples used in this study. Multiple regression is used to analyze the data of study. As the results, there is a significantly positive relationship between ownership status by management, size of company, and corporate financial performance represented by return on asset (ROA) at 0.05 and 0.01.

Keywords

Article Details

How to Cite
Suttipun, M. (2018). The Relationship between Ownership Structure, Board Composition and Corporate Characteristics on Financial Performance of Listed Companies in the Stock Exchange of. Journal of Management Science Chiangrai Rajabhat University, 13(1), 1-24. Retrieved from https://www.tci-thaijo.org/index.php/jmscrru/article/view/128068
Section
Research Articles
Author Biography

Muttanachai Suttipun

Ph.D. (Accounting and Finance), University of Newcastle, Australia. (2012), Currenty a Lecturer in Accountancy School, Faculty of Management Sciences, Prince of Songkla University

References

Abeysekera, I. (2010). The influence of board size on intellectual capital disclosures by Kenyan listed firms. Journal of Intellectual Capital, 11(4), 504-518.

Balal, A.R. (2000). Environmental reporting in developing countries: empirical evidence from Bangladesh. Eco-Management and Auditing, 7(3), 114-121.

Bauer, R., Guenster, N. & Otten, R. (2003). The effect on stock returns, firm value and performance: empirical evidence on corporate governance in Europe. EPMA 2004 Basel Meetings Paper. https://www.ssrn.com.

Bhagat, S. & Black, B. (2001). The non-correlation between board independence and long term firm performance. https://www.ssrn.com/abstract=133808, searching in 2016, October 10.

Bonna, A.K. (2012). The impact of corporate governance on corporate financial performance. Doctoral Thesis, Walden University, the United State of America.

Brammer, S. & Pavelin, S. (2006). Factors influencing the quality of corporate environmental disclosure. Business Strategy and the Environment, 17, 120-136.

Chamnankij, O. & Suttipun, M. (2016). The relationship between corporate governance and triple bottom line reporting: a case study of listed companies in the Stock Exchange of Thailand. Journal of Business Administration, 39(149), 23-43. (in Thail)

Chansaporn, S. (2003). Factors associated with audit committee effectiveness in corporate governance: an internal auditor’s perspective. Master Degree: Chulalongkorn University. (in Thai)

Chau, G. & Gray, S.J. (2010). Family ownership, board independence and voluntary disclosure: evidence from Hong Kong. Journal of International Accounting Auditing and Taxation, 19(2), 93-109.

Chobpichien, J. (2009). The effect of scope of business operations as conglomerate on the relationship between corporate governance characteristics and voluntary disclosures in the annual report about social responsibility of listed companies in the Stock Exchange of Thailand. Journal of Management Science, 1(1), 85-107. (in Thai)

Coleman, K.A. (2007). Corporate governance and shareholder value maximization: an African perspective. Journal Compilation African Development Bank.

Eisenberg, N., Cumberland, A. & Spinrad, T.L. (1998). Parental socialization of emotion. Psychological Inquiry, 9, 241-273.

Eng, L.L. & Mak, Y.T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Finance, 46, 1325-1360.

Haji, A.A. & Ghazali, N.A.M. (2013). A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia. Asian Review of Accounting, 21(1), 27-52.

Ho, S. & Wong. (2001). A study of the relationship between corporate governance structure and the extent of voluntary disclosure. Journal of International Accounting, Auditing & Taxation, 10(2), 139-156.

Intachaiwong, N. (2013). The impact of corporate governance and firm performance: a case study of listed companies in the Stock Exchange of Thailand. Master Degree: Bangkok University. (in Thai)

Jensen, M.C. & Mecking, W.H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360.

Li, H.X., Wang, Z.J. & Deng, X.L. (2008). Ownership, independence directors, agency cost and financial distress: evidence from Chinese listed companies. Corporate Governance, 8(5), 22-36.

Mak, Y. & Kusnadi, Y. (2005). Size really matters: further evidence on the negative relationship between board size and firm value. Pacific-Basin Finance Journal, 13, 301-318.

Mangena, M. & Pike, R. (2005). The effect of audit committee shareholding, financial expertise and size on interim financial disclosures. Accounting & Business Research, 35(4), 327-349.

McColgan, P. (2001). Agency theory and corporate governance: a review of the literature from a UK perspective. Department of Accounting and Finance, University of Strathclyde, Glasgow.

Mokthaisong, P., Buasook, S., Jampachisri, K. and Lonkani, R. (2014). The relationship between corporate governance mechanisms, ownership structure, agency cost and earning quality in Thai listed companies. Journal of Modern Management Science, 7(1), 1-10. (in Thai)

Onlutee, M. (2013). The relationship between corporate governance and environmental disclosures in annual reports: a case study of listed companies in the Market for Alternative Investment. Master Degree: Prince of Songkla University. (in Thai)

Pham, P., Suchard, J. & Zein, J. (2007). Corporate governance and alternative performance measures: evidence from Australian firms. https://www.ssrn.com/abstract=105985, searching in 2016, October 10.

Ratchatawan, J. (2006). A comparison of factors that affect the quality of environmental disclosure in manufacturing industry and that in service industry: am empirical research of companies listed in the Stock Exchange of Thailand. Doctoral Degree: Chulalongkorn University. (in Thai)

Sathitmanwiwat, K. (2005). The relationship between control mechanisms in corporate governance and corporate performance of listed companies in the Stock Exchange of Thailand other than financial institutions. Master Degree: Chulalongkorn University. (in Thai)

Schipper, K. & Vincent, L. (2003). Earning quality. Accounting Horizon, 17, 97-110.

Siritanan N. (2007). Factors effecting on disclosure level of the listed company in the Stock Exchange of Thailand. Kasetsart Applied Business Journal, 1(1), 9-16. (in Thai)

Silpcharu, T. (2010). Research and statistical analysis by SPSS (Edition 11). Bangkok: S.R. Printing Mass Product. (in Thai)

Srijunpetch, S. (2008). Corporate governance theory. Journal of Business Administration, 31(120), 2-3. (in Thai)

Suttipun, M. (2012). Environmental disclosures in corporate annual reports: a case study of SET50 listed companies in the Stock Exchange of Thailand. Chulalongkorn Business Review, 34(132), 47-67. (in Thai)

Suttipun, M. (2012). Triple Bottom Line reporting in annual reports: a case study of companies listed on the Stock Exchange of Thailand (SET). Asian Journal of Finance & Accounting, 4(1), 69-92.

Taliyang, S.M. & Jusop, M. (2011). Intellectual capital disclosure and corporate governance structure: evidence in Malaysia. International Journal of Business and Management, 6(12).

The Stock Exchange of Thailand (SET). (2012). Company Listed in the Stock Exchange of Thailand. Retrieved May 10, 2016, www.set.or.th/th/regulations/cg/roles_p1.html. (in Thai)

Wiwattanakantang, Y. (2000). The ownership structure, capital structure and performance of Thai firms. Doctoral Thesis, Hitotsubashi University, Tokyo.

Yamane, T. (973). Statistics: an introductory analysis 3rd edition. New York: Harper & Row.

Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economic, 40, 85-211.