companies are increasingly active in investing abroad. For their own equity to be acceptable in mergers and acquisitions, corporate governance standards must be high. Ownership A defining characteristic of
were 5.1 trillion THB outstanding government bonds, and 0.68 trillion THB outstanding in corporate bonds. All shares to be traded must be dematerialized in the Thailand Securities Depository (TSD), which
in 2006. In addition, the combination of the market capitalization and the outstanding value of both government and corporate debt securities outgrew the Gross Domestic Product by around 137 percent
principles. Good corporate governance is a critical component in any capital market. Without it, market development would be a futile effort. Yet, most investors tended to overlook this corporate virtue over
of the Thai economy and capital market. Local investors were active as the international investors were net buyers of shares. Equally important, such confidence and trust can be attributed in large
strengthening clearing and settlement system to be able to accommodate any possible default risk, and (3) enhancement of stability in securities trading system by laying down measures to prevent or cut off
Fund Raising of Businesses and Privatization of State Enterprises ■ Support for Unlisted Companies in Preparing to be Listed so that will Pave Way for Long-term Supply of New Products for the SET
excellent opportunities for sustainable growth, so we can say that good CG adds to a firm’s value and sustains its growth. In 2002, The Stock Exchange of Thailand (SET) supported listed firms have to good CG
companies, both financial and non- financial. To the extent they are deemed applicable, they might also be a useful tool to improve corporate governance in companies whose shares are not publicly traded
involved agreed with the principles proposed by the SEC and added the principle of flexibility, in order that the business operators will be able to put this into practice effectively. The public hearing