The relationship between corporate governance and credit management affecting to profitability of banking businesses listed on Stock Exchange of Thailand

Abstract

The objective of this research was to study the relationship between corporate governance and credit management that affects the profitability of banking businesses listed on the Stock Exchange of Thailand. It was a quantitative research. Using a sample group from banking businesses listed on the stock exchange during 2019-2023, the data used in the study totaled 60 data. This research used the statistical analysis. The study employed multiple regression analysis. The study examined the impact of corporate governance and credit management on the profitability of banking businesses listed on the Stock Exchange of Thailand revealed that a positive correlation between corporate governance and the size of the board of directors (BSIZE). The proportion of independent directors (IND) had a positive impact on the ratio of net interest income to average assets (NIM), expense-to-income ratio (CI), and return on assets (ROA) with statistical significance at the .05 level. The merger of executive board positions (DUAL) had a positive effect on the expense-to-income ratio (CI) and the rate of return on equity (ROE) with statistical significance at the .05 level, and the corporate governance assessment score (CGR) had a positive impact on Ratio of net interest income to average assets (NIM) and return on equity (ROE) with statistical significance at the .05 level and found that the ratio of non-performing loans has a negative effect on the ability to make profits as measured by the net interest income ratio to average assets (NIM), cost to income ratio (CI), return on assets (ROA) and return on equity (ROE) with statistical significance at the .05 level.