RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND TAX PLANNING WITH STOCK RETURNS OF SET100 COMPANIES FROM THE STOCK EXCHANGE OF THAILAND

Abstract

This article aimed to 1) examine the relationship between corporate governance and stock returns of companies listed in the SET100 index of the Stock Exchange of Thailand; and 2) examine the relationship between tax planning and stock returns of companies listed in the SET100 index of the Stock Exchange of Thailand. This study is quantitative research. A focused sample group of 57 companies from the SET100 index was selected for data collection from the fiscal year 2021 to 2023, resulting in a total of 171 samples and analyzing the data using statistical values such as frequency, mean, percentage, standard deviation. The data was analyzed bymultiple regression analysis. The study found that the tax rate on assets had a positive correlation with stock returns in returns on equity and returns on total assets, but the corporate governance scores and effective tax rate had a negative relationship with stock returns in returns on equity and returns on total assets, a significance of .01. Regarding the proportion of shareholding of major shareholdings, it had a positive correlation with stock returns in returns on equity and returns on total assets. However, the proportion of independent directors had a negative relationship with stock returns in returns on equity and returns on total assets, a significance of .05. Except for the tax rates on corporate income relative to operating cash flow, they showed a statistically significant negative correlation with stock returns in all aspects. Additionally, corporate governance and tax planning had no relationship with the dividend yield rate. There was no statistical significance.