The Effect of Financial Report Quality to the Competitive Advantage of Small and Medium Enterprises in the Upper Northern of Thailand

Abstract

This research has the objectives to study the levels of the financial reporting quality, competitive advantage, and the effect of financial reporting quality on the competitive advantage of Small and Medium Enterprises in the Northern Region of Thailand.  The population and sample are the groups of Small and Medium Enterprises who are participating in the project “Productivity Improvement Loan” of Small and Medium Enterprise Development Bank of Thailand (SME Development Bank) of 8 provinces of the Northern region of Thailand; including Chiang Rai, Chiang Mai, Phrae, Nan, Phayao, Lampang, Mae Hong Son and Lamphun for the total of 400 samples. This research used Taro Yamane formula to determine the sample size at 95% confidence level. The research tool was a questionnaire that contain both checklist part and a 5-level rating scale part. The quantitative data were analyzed by the descriptive statistic, frequency, percentage, mean, standard deviation and T-test in multiple regression analysis. The results of the study showed that the opinion on the financial reporting quality and the competitive advantage of Small and Medium Enterprises in the Northern Region of Thailand in overall were at high level. Testing the effect of financial reporting quality on the competitive advantage of Small and Medium Enterprises in the Northern Region of Thailand showed a positive relationship. While the variables that are encouraged to gain a competitive advantage of Small and Medium Enterprises in the Northern Region of Thailand are including low-cost leadership, manageability, profitability, and business leadership with the statistically significant at a level of 0.05.