Profitability Working Capital and Corporate Governance and Their Impact on the Firm Value of Listed Companies in the Stock Exchange of Thailand A case study of the Industrials and Agro & Food Industry Sectors

Abstract

This study aims to examine the relationship between profitability, working capital, and corporate governance and their impact on firm value of listed companies in the Stock Exchange of Thailand, specifically in the Industrials, Agro, and Food Industry sectors. This research employs a Quantitative Research methodology, utilizing secondary data collected from annual reports, financial statements, and accompanying notes of sample companies during the period 2019–2023. The data sources include the Stock Exchange of Thailand website and the official websites of the selected companies. The findings indicate that profitability, working capital, and corporate governance have a statistically significant relationship with firm value. Specifically, return on assets (ROA) and return on equity (ROE) positively affect the price-to-earnings ratio (P/E) and the price-to-book value ratio (P/BV). Additionally, accounts receivable turnover and the collection period influence firm value, as companies with efficient working capital management tend to enhance profitability and firm valuation. Regarding corporate governance, the study finds that board size and the proportion of non-executive directors positively correlate with firm value, highlighting the role of good corporate governance in fostering financial stability and organizational transparency.