FACTORS THAT AFFECT THE CREDIBILITY OF FINANCIAL REPORT FROM THE COMPANIES LISTED IN THE STOCK EXCHANGE OF THAILAND

Abstract

The objective of this study was to explore factors which have an effect on the credibility of financial reports from the companies listed in the Stock Exchange of Thailand from the perspective of investment analysts. The instrument used in this research was a questionnaire. The statistical analysis consisted of descriptive statistics, frequency distribution, mean, percentage, one-way analysis of variance and multiple regression analysis for hypothesis testing. The results of the research showed that action timeline, organization size, and types of audit reports had different effects on the credibility of financial reports in terms of verifiability. Types of audit reports had different effects on the credibility of financial reports in terms of completeness. Organization size, capital structure, and types of audit reports had different effects on the credibility of financial reports in terms of comparability. Action timeline and organization size had different effects on the credibility of financial reports in terms of timeliness. Proportion of independent directors had different effects on the credibility of financial reports in terms of comparability. Disclosure, responsibilities of the board of directors, and roles of stakeholders has a positive impact on the credibility of financial reports in terms of faithful representation, verifiability, comparability, and completeness. Therefore, companies listed on the Stock Exchange of Thailand should pay more attention to accounting standards compliance, information accuracy in accordance with the principles of good corporate governance in order to build the credibility of an organization’s financial reporting which can benefit other users.