Corporate governance and value addition efficiency of corporate resources in Thailand

This paper examines the impact of board of directors (BOD) on corporate performance in value addition efficiency (VAE) of resources in an emerging economy namely Thailand in the context of post Asian financial crisis 1997/1998 period. This research uses data of top, as per market capitalisation, listed companies in Thailand for 2005 and 2008 to test the relationship. The study measures VAE of resources using Pulic's value added intellectual coefficient (VAICTM) model. The results find the impact of different BOD attributes on VAE of resources in top Thai companies, which is increasing over the post Asian crisis period. However, the study do not find significant impact of all BOD attributes on VAE which indicates the juvenile state of the BOD's effectiveness in achieving sustainable corporate performance. Managers and the policy makers may use the results to understand the complicated magnitude of BOD governance and its effectiveness in top companies in emerging economy, which might have the implication in developing more effective corporate governance structure in order to tackle the adverse effects of any further financial crisis.