The ownership structure, capital structure and performance of Thai firms

Abstract

This dissertation investigates the ownership and capital structure of Thai firms. Additionally, the study examines the influence of the ownership structure and corporate governance on the capital structure policy and performance of Thai firms. The data sample is based on 270 non-financial companies listed in the Stock Exchange of Thailand in 1996. The firms in the sample account for 97.08 percent of the capitalization of non-financial companies traded in the Stock Exchange of Thailand. Overall individuals appear to have the highest share of Thai firms' equity. Individuals hold approximately 54 percent of all shares. Domestic corporations are the second largest share-holding group. They hold 25.76 percent of the outstanding shares. Domestic financial institutions hold less than 10 percent of the shares. When corporate shareholders are grouped together with their controlling shareholder, firms are, however, not as widely held as these statistics show. In contrast, in 82.59 percent of the firms, the largest shareholder holds the controlling block, defined as the shareholdings of at least