The effects of ownership structure, board of directors and organizational performance on stock turnover through voluntary disclosure of Thai listed companies

Abstract

This research aimed to investigate the effects of ownership structure, board of directors and organizational performance on stock turnover. Unlike prior studies, this research examined voluntary disclosure as a mediator variable to investigate the effects of ownership structure, board of directors and organizational performance on stock turnover. The research samples were the listed companies on the Stock Exchange of Thailand in 2014, except financial industry, and finally 323 companies were included in this study. The data were analyzed through descriptive statistics. The structural equation model was also employed for factor analysis and structure relationship among variables. The major findings revealed that ownership concentration had negative direct causal effect on both voluntary disclosure and stock turnover, whilst foreign ownership and organizational performance had positive direct causal effect on voluntary disclosure. Voluntary disclosure had positive direct causal effect on stock turnover. Moreover, ownership concentration had negative indirect effect on stock turnover through voluntary disclosure, whilst foreign ownership and organizational performance had positive indirect effect on stock turnover through voluntary disclosure. The results also indicated that voluntary disclosure decrease was caused by high ownership concentration, and stock turnover decrease was caused by information asymmetry between ownership concentration and free-floats.