The Effect of Internal Control on Profitability of Listed Company in Stock Exchange of Thailand (SET): A Focus on the Construction Services Sector
Keywords:
Internal Control, COSO Framework, Profitability, Construction Services, Monitoring Activities, Stock Exchange of ThailandAbstract
This study evaluates the effectiveness of internal control systems and their influence on profitability within the construction services sector listed on the Stock Exchange of Thailand during the period 2020–2024. The analysis is grounded in the COSO framework and encompasses 27 companies over a five-year timeframe. Descriptive statistics, correlation analysis, and multiple regression analysis reveal that construction companies demonstrate high internal control implementation levels, however, faced significant profitability challenges during the study period, reflecting the impact of the COVID-19 pandemic, supply chain disruptions, and economic volatility. The most significant finding is that Monitoring Activities emerged as the critical determinant of profitability, showing statistically significant positive associations with GPM. Other COSO components showed no significant direct associations with profitability, suggesting these foundational components may influence performance through indirect pathways.
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