TRANSLATING GOVERNANCE INTO GROWTH: THE MEDIATING ROLE OF G-ESG DISCLOSURE IN THAI LISTED FIRMS

Abstract

In the evolving landscape of emerging capital markets, aligning corporate governance (CG) mechanisms with long-term viability is critical. This study investigates how corporate governance scores translate into financial resilience by examining the mediating role of governance-dimension sustainability disclosure (G-ESG) on the sustainable growth rate (SGR) of companies listed on the Stock Exchange of Thailand. Grounded in Agency and Signaling Theories, the research employs a quantitative path analysis approach to evaluate empirical data from Thai listed firms. The empirical results reveal a robust structural relationship: superior corporate governance scores not only directly enhance sustainable growth but also exert a significant indirect influence through the transparency of governance-specific sustainability reporting. This evidence confirms that G-ESG disclosure functions as a vital strategic conduit, efficiently amplifying the value of internal governance quality into tangible economic performance. These findings challenge the traditional view of compliance as a mere administrative cost, demonstrating instead that high-quality governance signaling—mediated by transparent disclosure—is a fundamental driver of sustainable competitiveness. Consequently, this study offers a strategic imperative for regulators and boards to prioritize G-ESG transparency as a key mechanism for unlocking long-term corporate value.