The relationship between corporate governance, directors’ remuneration and audit quality with profitability and dividend payment of companies listed on the Stock Exchange of Thailand, group SET100

Abstract

This article aimed to: 1) examine the relationship between corporate governance directors’ remuneration and audit quality with the profitability of companies listed on the Stock Exchange of Thailand, group SET100; and 2) examine the relationship between corporate governance directors’ remuneration and audit quality with the dividend payment of companies listed on the Stock Exchange of Thailand, group SET100. This study is quantitative research. The sample group was 68 companies from the SET100 index was selected for data collection from the fiscal year 2019 to 2023, resulting in a total of 340 samples. The statistic was used for analyzing data including percentages, averages, standard deviations, correlation coefficients and multiple regression analysis. The research found that directors’ remuneration, such as annual remuneration, had a positive relationship with return on assets at a significant level of .05, and directors’ remuneration, such as meeting allowance, was positively related to dividend yield at a significant level of .05. It may be that setting appropriate remuneration would create incentives for directors to work with a focus on adding value to the company. Audit quality, such as the size of the audit firm, was positively related to return on assets and return on equity at a significant level of .05 and positively related to dividend yield at a significant level of .05. It may be that choosing an auditing company from the BIG4 group would affect the company's ability to make profits and pay dividends because it was a famous company, had resources and expertise, which built confidence among investors and shareholders.