CORPORATE GOVERNANCE LEVEL EFFECTS ON PROFITABILITY : CASE STUDY OF THE LISTED COMPANIES SERVICE INDUSTRY GROUP ON THE STOCK EXCHANGE OF THAILAND

Abstract

                 This research aims to examine the corporate governance rating effect on to profitability of the listed companies  service industry  group  on  the  Stock Exchange of Thailand.  For the profitability  by using return on assets (ROA) and return on equity (ROE). The sample was consisted of 39  companies listed in service industry group on the Stock exchange  of Thailand have corporate governance rating on excellent level, very good level, good level and lower of good level for the consecutive years 2008 - 2017. The analysis of data and statistics used in quantitative analysis was included the percentage and using multiple regression analysis to test      the hypothesis at 0.01 and 0.05 significant level. 

The results of the study show that the companies with excellence score on the corporate governance were  7 companies  or  16.50% , the compa nies with very good score were 12 companies or  31.50%,  the companies with good score were 4 companies or 11.00%  and  the companies with below good level score were 16 companies or 41.00%. The hypothesis testing of the showed that there are statistically significant influence of corporate governance score, independence of chairman and chief executive officer non-duality on to profitability by using return on assets (ROA) and return on equity (ROE). while independent directors and board size hove not impact on profitability by using return on assets (ROA) and return on equity (ROE).