Panel data from 193 non-financial Thai listed firms, covering 1,206 firm-years in 2017–2022, found investment efficiency positively associated with ROA and Tobin's Q.
Key findings
- Investment efficiency related to ROA at β=0.0035 and Tobin's Q at β=0.0046, both p
Why this matters globally
The study adds emerging-market evidence that capital allocation and governance may interact and should not be assessed separately.
Thai researcher contribution
Prince of Songkla University researchers generated longitudinal evidence directly from Thailand's capital market.
Limitations to consider
Estimated optimal investment and governance scores rely on assumptions; GMM cannot remove all endogeneity. Financial firms were excluded and data ended in 2022.