THE IMPACT OF CEO TENURE ON SALES GROWTH: EMPIRICAL EVIDENCE FROM THAI LISTED COMPANIES

Abstract

This study investigates the impact of CEO tenure on sales growth in Thai listed companies from 2012 to 2021. Utilizing data from the Stock Exchange of Thailand (SETSMART) and Form 56-1 (One report), the study employs descriptive statistics and logistic regression analyses to examine the relationship between CEO tenure and sales growth. The findings reveal a significant negative association, indicating that extended CEO tenure may not enhance sales performance. Specifically, prolonged leadership under the same CEO tends to result in complacency, resistance to change, and reduced innovation, ultimately hindering the company's ability to adapt to market dynamics and drive sales growth. Additionally, the study identifies that return on assets (ROA) positively influences sales growth, while cash flows from operating activities negatively impact it. These insights contribute to the literature on corporate sustainability and turnaround strategies, offering practical implications for investors, management teams, and regulators in emerging markets.