Influence of the Composition of the Board of Directors on the Performance of Listed Companies in the Stock Exchange of Thailand

Abstract

          The objective of this study is to investigate the components of the board of directors that influence the operational performance of organizations. The research aims to examine the relationship between corporate governance, specifically the board of directors' oversight and shareholder structure, with the return on assets (ROA) and return on equity (ROE) ratios of publicly listed companies on the Stock Exchange of Thailand.

This study examines data from publicly listed companies on the Stock Exchange of Thailand, utilizing annual reports from the years 2020 to 2022, covering a period of three years. A total of 100 companies were selected from a sample of 182 companies. The research findings reveal that, in testing the relationships, board size, the independence of the audit committee, and firm size are significantly correlated with the return on assets (ROA) ratio. Additionally, board size, audit committee size, and firm size are found to be related to the return on equity (ROE) ratio. The benefits of this research provide valuable insights for companies listed on the Stock Exchange of Thailand, offering guidance for improving corporate governance practices. Furthermore, this study serves as a database for future research for those interested in the topic.