The influence of corporate governance, and sufficiency economy philosophy disclosure on corporate financial performance: Evidence from Thailand

Muttanachai Suttipun (Department of Accountancy, Faculty of Management Sciences, Prince of Songkla University, HatYai, Songkhla, Thailand)

Asia-Pacific Journal of Business Administration

ISSN: 1757-4323

Publication date: 3 April 2018

Abstract

Purpose

The purpose of this paper is to investigate the nature and level of Sufficiency Economy Philosophy (SEP) disclosure in the annual reports of companies listed in the Stock Exchange of Thailand (SET), to test the influence of corporate governance on SEP disclosure, and to examine the influence of corporate governance, and SEP disclosure on corporate financial performance.

Design/methodology/approach

By simple random sampling, 235 out of 569 companies in the SET were selected as the study sample. Content analysis by word count was used to explore the nature and level of SEP disclosure in the 2015 annual reports. Descriptive analysis and path analysis were used to analyze the data.

Findings

The results indicated that the average level of SEP disclosure in the 2015 annual reports was 1,235 words. The most common theme of SEP disclosure was morality disclosure following by reasonableness, self-immunity, knowledge, and moderation disclosures. There was a positive significant influence of firm size on level of SEP. Moreover, there was a positive significant influence of the level of SEP, and the size of committee on corporate financial performance.

Originality/value

The findings shed light on the SEP as developed by his Majesty the King Bhumibhol Adulyadej in the Thai setting. The study also endeavored to validate the relevance and applicability of the SEP concept to the sustainable development of the business sector.

Keywords

Acknowledgements

This work was supported by the grants of Prince of Songkla University (No. MAN600547S). His Majesty the King Bhumibhol Adulyadej is always in author heart.

Citation

Suttipun, M. (2018), "The influence of corporate governance, and sufficiency economy philosophy disclosure on corporate financial performance: Evidence from Thailand", Asia-Pacific Journal of Business Administration, Vol. 10 No. 1, pp. 79-99. https://doi.org/10.1108/APJBA-08-2017-0077

Download as .RIS

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
To rent this content from Deepdyve, please click the button.
If you think you should have access to this content, click the button to contact our support team.