BOARD CHARACTERISTICS AND SHARE REPURCHASE DECISIONS

Abstract

This study examines the relationship between board characteristics—including board size, the proportion of independent directors, CEO/Chairman duality, and the proportion of male directors—and the likelihood of share repurchase decisions among companies listed on the Stock Exchange of Thailand. Data were collected from 532 listed companies in 2025, a year that represented both the highest number of participating firms and the highest total share repurchase value within the study period. Logistic regression analysis was employed to test the hypotheses. The results indicate that the proportion of independent directors is positively and significantly associated with the likelihood of share repurchase decisions. In contrast, board size, CEO/Chairman duality, and the proportion of male directors show no statistically significant relationship with the likelihood of share repurchase decisions. Furthermore, firm size exhibits a significant positive association, whereas the debt-to-asset ratio displays a significant negative association with the likelihood of share repurchases. These findings suggest that independent directors serve as a key corporate governance mechanism influencing payout policy decisions among Thai listed firms. This aligns with Agency Theory, which posits that independent directors monitor management, mitigate agency conflicts, and promote financial decisions aimed at maximizing shareholder value.

Keywords: Share Repurchase, Board of Directors, Independent Directors, Agency Theory, Stock Exchange of Thailand