Corporate Governance That Influences an Investment Intention in the ASEAN-Stars Thai Listed Companies: A Marketing Application for Brokerage Firms

International Corporate Governance and Regulation

ISBN: 978-1-78756-536-4, eISBN: 978-1-78756-535-7

ISSN: 1569-3732

Publication date: 1 November 2018

Abstract

This study provides practical implications for brokerage firms to utilize the importance of corporate governance fundamentals in marketing the equity securities. It models a structural relationship of board qualification, management competency, transparent corporate disclosure, and earning quality to the intention to invest. Data were collected from 1,410 investors who were asked about their investment intentions in the 13 ASEAN-Stars Thai listed companies. The investors in our model form their investment attitudes based on the company’s earning quality which is determined by its corporate governance attributes. The results show that corporate governance fundamentals significantly influence the investors’ perception on the company’s perceived earning quality and that the perceived earning quality has a significant positive effect on the investors’ intention to invest in the company. Our findings can help marketers at brokerage firms to persuade their customers to invest if they recommend equity securities of good governance companies.

Keywords

Acknowledgements

Acknowledgment

We would like to thank the College of Innovation Management at RMUTR, UmaPorn Kleekasorn, Krittaya Taonak, Srisuda KingWichit, Chayidsara Intussakul, Tippamon Sriuthai, and Supawadee Maneewong for support on data collection and seminar participants at the National Research Alliance Dialogue on Corporate Governance 2017, Tatre Jantarakolica, Kobkul Jantarakolica, Dararat Sukkeaw, Wattana Sakayachiwakit, Nopnapa Jullobol, and Srisamorn Pongput for their helpful comments in the earlier version of this chapter.

Citation

Ngamchom, W., Kamolsakulchai, M., Suwannoi, T. and Wongkantarakorn, J. (2018), "Corporate Governance That Influences an Investment Intention in the ASEAN-Stars Thai Listed Companies: A Marketing Application for Brokerage Firms", International Corporate Governance and Regulation (Advances in Financial Economics, Vol. 20), Emerald Publishing Limited, pp. 173-187. https://doi.org/10.1108/S1569-373220180000020007

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Emerald Publishing Limited

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