THE INFLUENCE OF CORPORATE GOVERNANCE ON FINANCIAL DISTRESS OF LISTED COMPANIES ON THE STOCK EXCHANGE OF THAILAND
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This research aims to 1) Study the influence of board size on the financial distress of listed companies on the Stock Exchange of Thailand and 2) Study the influence of Chief Executive Officer duality on the financial distress of listed companies on the Stock Exchange of Thailand. This is a quantitative study analyzing data using a balanced panel analysis method and the data are analyzed using a fixed-effects model from a sample of 1,323 firm-years observations of listed companies on the Stock Exchange of Thailand during the period 2021 - 2023, a time of the economic crisis resulting from the COVID-19 pandemic. The results show that the CEO duality has a statistically significant positive influence on the financial distress. This reflects that granting unified decision-making authority to management increases management flexibility and creates value for the business, allowing companies to respond promptly to economic uncertainties and reducing the risk of financial distress. Conversely, capital structure has a statistically significant negative influence on financial distress, indicating that increased capital structure will require companies to repay debt in the future, worsening their financial position. However, board size does not have a statistically significant influence on financial distress, reflecting that the effectiveness of corporate governance does not depend solely on the number of directors but also on the quality, expertise, and efficiency of the board’s performance.
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