THE INFLUENCE OF CORPORATE GOVERNANCE PRACTICES ON FIRM’s SUSTAINABLE GROWTH: A CASE STUDY OF THAILAND SUSTAINABILITY INVESTMENT FIRMS (THSI) IN THE STOCK EXCHANGE OF THAILAND AND THE MARKET FOR ALTERNATIVE INVESTMENT (MAI)

Abstract

This study aims to investigate the impact of corporate governance on the sustainable growth of companies listed in the Thailand Sustainability Investment (THSI) index on the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI). Secondary data from annual reports, corporate governance reports, and Form 56-1 were collected for the period 2015-2022. Corporate governance variables studied include board size (BODSIZE), the proportion of independent directors (IND), the proportion of shares held by executives (PSED), the duality of CEO and chairman (CDUAL), meeting frequency (TIME), existence of a risk committee (RC) and Sustainability Excellence Awards (SSR). The sustainable growth rate (SGR) was used as the dependent variable. Descriptive statistics and multiple regression analysis (Enter method) were employed to analyze the data. The results revealed that at the 95% confidence level, the existence of a risk committee (RC) significantly positively impacted sustainable growth (SGR). At the 99% confidence level, board size (BODSIZE) and Sustainability Excellence Awards (SSR) were found to have a significant negative impact on sustainable growth (SGR), contrary to expectations. Other corporate governance variables examined did not show a significant relationship with sustainable growth (SGR).