THE IMPACT OF CHIEF EXECUTIVE OFFICER (CEO) ATTRIBUTES ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE IN THAILAND
Keywords:
CEO Characteristics, ESG Performance, Corporate Governance, Gender Diversity, Sustainability PracticesAbstract
This study investigates the influence of Chief Executive Officer (CEO) characteristics on the Environmental, Social, and Governance (ESG) performance of firms listed on the Stock Exchange of Thailand between 2019 and 2023, based on 610 panel observations. Drawing on agency theory, stakeholder theory, and upper echelons theory, alongside insights from critical mass theory, the research examines how CEO attributes, including gender, age, tenure, postgraduate education, and academic field, relate to ESG outcomes. The analysis employs both panel data regression, using fixed and random effects models, and logistic regression to assess the likelihood of firms being listed under SET’s Thailand Sustainability Investment (THSI) or ESG Ratings. Secondary data were collected from annual reports, corporate websites, Refinitiv Workspace, and SETSMART databases. The results reveal that firms led by female CEOs exhibit significantly higher ESG performance, with an average increase of 2.81 points in overall ESG score and a 10.62-point increase in governance, affirming the critical mass theory that supports the positive impact of gender diversity in executive leadership. CEO age and tenure are positively associated with various ESG dimensions, indicating that experienced leadership enhances strategic integration of sustainability practices. In contrast, CEO duality is negatively associated with overall ESG performance, with a decline of 2.32 points, suggesting governance risks associated with power consolidation. CEO shareholding shows mixed effects across ESG dimensions. Furthermore, CEOs holding postgraduate degrees or business-related academic qualifications are linked to improved social performance. This study provides the first empirical evidence on the relationship between CEO characteristics and ESG performance in Thailand. The findings contribute to the literature on leadership and sustainability in emerging markets and offer practical implications for executive recruitment and corporate governance reform.
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