Good Corporate Governance Effects on Firm Value through Mediation of Tax Planning of Listed Companies in Thailand

Abstract

This research aimed to study the effects of good corporate governance on firm value through tax planning in companies listed on the Stock Exchange of Thailand. Secondary data were collected from 2019 to 2023, comprising 756 samples. The assessment of corporate governance used the evaluation criteria from the Thai Institute of Directors Association, while tax planning was measured using the tax-to-total-assets ratio and firm value (Tobin’s Q). Structural Equation Modeling (SEM) and Path Analysis were employed for statistical analysis. The study found that good corporate governance positively influences firm value (Tobin’s Q). Tax planning, measured by the tax-to-total-assets ratio, also has a significant effect on firm value as reflected in market prices (Tobin’s Q). Furthermore, good corporate governance has a direct and indirect positive effect on firm value (Tobin’s Q) through tax planning.