The impact of board structure on performance of Thai-listed companies in Market for Alternative Investment (mai)

Abstract

This research investigates the relationship between corporate governance mechanisms and firm performance among Thai companies listed on the market for alternative investment (mai). The study uses an unbalanced panel data regression analysis on sample of 145 small and medium enterprises (SMEs) listed firms on the mai market covering the years 2009 to 2018. With respect to the results, this study found a conflict with global corporate governance practice that board independence is significantly negative in relation to firm performance. Furthermore, the education level of directors is found to positively impact Tobin's Q. Therefore, these findings contribute the implications to practical in context of SMEs listed firms as the board should create a positive environment to enhance work efficiency and transparency through instituting a monitoring mechanism at the proper level and board should recruit directors with a higher level of education.