BOARD CHARACTERISTICS AND SUSTAINABLE GROWTH: THE MEDIATING ROLE OF SUSTAINABILITY DISCLOSURE
DOI:
https://doi.org/10.14456/aisr.2025.43Keywords:
Board Characteristics, Sustainability Disclosure, Sustainable Growth, Corporate Governance, Stock Exchange of ThailandAbstract
In an era where corporate transparency increasingly dictates capital allocation, achieving sustainable growth remains a paramount objective for firms in emerging markets. This study investigates the complex mechanisms linking corporate governance to long-term viability by examining the mediating role of sustainability disclosure in the relationship between board characteristics and the sustainable growth of companies listed on the Stock Exchange of Thailand (SET). Grounded in Agency Theory and Stakeholder Theory, the research employs a rigorous quantitative approach to analyze empirical data from Thai listed firms. The analysis tests explicitly the extent to which sustainability disclosure bridges the gap between internal governance structures—such as board independence and composition—and external economic performance. The empirical results reveal that sustainability disclosure functions as a critical mediator, significantly enhancing the positive impact of effective board characteristics on firm growth. These findings challenge traditional direct-effect models, suggesting that governance mechanisms translate into value creation primarily through transparent non-financial reporting. Consequently, this study offers actionable insights for regulators and directors, advocating that strengthening sustainability disclosure mandates is essential for leveraging board governance to achieve resilience and sustainable competitiveness in the dynamic Thai capital market.
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Copyright (c) 2025 Janjira SODSAI, Dararat PHOPRACHAK, Anek PUTTHIDECH, Kusuma DAMPITAKSE, Surachai AM-UGSORN
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