Companies in Thailand finance their operations by issuing either debt or equity securities. A debt is a liability of the issuing Thai company, whereas by issuing equity you sell ownership of the Thai company and bring in new investors as shareholders with you. When a Thai company issues debt, it is legally obligated to repay the amount it borrows, which is the original principal amount borrowed plus the interest payments that is the cost the companies pay to use those funds for a specified period.
Whereas, a Thai company issuing equity securities or shares, is not legally obligated to repay the amount it receives from shareholders, nor it is under legal obligation to pay periodical returns as is the case with debt requiring periodical interest payments.
However, shareholders have a claim on the Thai company’s assets after all the liabilities and debts have been cleared or paid off which is it is also called the residual claim hence they may become owners of the company to the extent of the investment made by them.
Consequently, shareholders expect the company’s management to act in their best interest by making decisions that will maximize the market price of their shares.