Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/29036
Title: Board, audit committee, ownership and financial performance - emerging trends from Thailand
Contributor(s): Farooque, Omar Al  (author)orcid ; Buachoom, Wonlop (author); Sun, Lan  (author)
Publication Date: 2020-02-03
DOI: 10.1108/PAR-10-2018-0079
Handle Link: https://hdl.handle.net/1959.11/29036
Abstract: Purpose - This study aims to investigate the effects of corporate board and audit committee characteristics and ownership structures on market-based financial performance of listed firms in Thailand.
Design/methodology/approach - It applies system GMM (generalized method of moments) as the baseline estimator approach, and ordinary least squares and fixed effects for robustness checks on a sample of 452 firms listed on the Thai Stock Exchange for the period 2000-2016.
Findings - Relying mainly on the system GMM estimator, the empirical results indicate some emerging trends in the Thai economy. Contrary to expectations for an emerging market and prior research findings, ownership structures, particularly ownership concentration and family ownership, appear to have no significant influence on market-based firm performance, while managerial ownership exerts a positive effect on performance. Moreover, as expected, board structure variables such as board independence; size; meeting and dual role; and audit committee meeting show significant explanatory power on market-based firm performance in Thai firms.
Practical implications - These findings are important for policymakers in constructing an appropriate set of governance mechanisms in an emerging market context, and for corporate entities and investors in shaping their understanding of corporate governance in the Thai institutional context.
Originality/value - Unlike previous literature on the Thai market, this study is the first to use the more advanced econometric method known as system GMM estimator for addressing causality/endogeneity issues in governance-performance relationships. The findings indicate new trends in the explanatory power of ownership structure variables on market-based firm performance in Thai-listed firms.
Publication Type: Journal Article
Source of Publication: Pacific Accounting Review, 32(1), p. 54-81
Publisher: Emerald Publishing Limited
Place of Publication: United Kingdom
ISSN: 2041-5494
0114-0582
Fields of Research (FoR) 2008: 150303 Corporate Governance and Stakeholder Engagement
140207 Financial Economics
150202 Financial Econometrics
Fields of Research (FoR) 2020: 350203 Financial econometrics
380107 Financial economics
350701 Corporate governance
Socio-Economic Objective (SEO) 2008: 910402 Management
900201 Administration and Business Support Services
910103 Economic Growth
Socio-Economic Objective (SEO) 2020: 110301 Administration and business support services
150302 Management
150203 Economic growth
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
Appears in Collections:Journal Article
UNE Business School

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