Empirical evidence of corporate governance in Thai stateowned enterprises

• Published in: Corporate governance (Bradford) Vol. 10; no. 5; pp. 617 - 634
• Main Authors: Khongmalai, Orapan, Tang, John C.S., Siengthai, Sununta
• Format: Journal Article
• Language: English
• Published: Emerald Group Publishing Limited 19.10.2010
• Subjects: Corporate governance; Factor analysis; Thailand
• ISSN: 1472-0701; 1758-6054
• DOI: 10.1108/14720701011085580

Purpose The primary objectives of this paper are to develop a multiattribute pattern of the corporate governance model in Thai stateowned enterprises assess the relative importance of different corporate governance practices and provide detailed information of each corporate governance practice. Designmethodologyapproach Qualitative and quantitative approaches were used. A case study was conducted to gather information on specific corporate governance behaviors in Thai stateowned enterprises. Then a questionnaire was developed and tested in 38 Thai stateowned enterprises. Factor analysis was conducted to examine a common framework of corporate governance practices. Findings This research demonstrated the multiattribute nature of the corporate governance model in Thai stateowned enterprises. According to this model, the most important corporate governance practice is strategic human resource management, followed by information technology, board of directors, risk management, internal control, and internal audit sequentially. Additionally, this study brings out insights into corporate governance practices that represent the specific characteristics of Thai stateowned enterprises. Research limitationsimplications This study is limited by the fact that the sample represents only Thai stateowned enterprises. Further studies should be conducted to better understand the complexity of the multiattribute nature of the corporate governance model in stateowned enterprises in developing countries. Practical implications Policy makers can utilize the multiattribute nature of the corporate governance model as a guideline for the further development of corporate governance practices in other stateowned enterprises. Originalityvalue This study demonstrated the multiattribute nature of the corporate governance model in stateowned enterprises in developing countries such as Thailand. This research confirms the broad principles of corporate governance as well as providing detailed information on corporate governance practices from a new perspective.