Effecting of Corporate Governance, the Ownership Structure and the Capital Structure on Earning Quality in the COVID-19 Situation: Case Study of SETHD Group in the Stock Exchange of Thailand
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Abstract
This research aims to 1) study the relationship between corporate governance and its impact on earning quality, 2) examine the influence of Ownership Structure on earning quality, and 3) investigate the effect of capital structure on earning quality in COVID-19 situation, using listed companies in the Stock Exchange of Thailand, SETHD group, by collecting data from the website of the Stock Exchange of Thailand between 2019 - 2023, a total of 310 data. Data analysis consists of descriptive statistics, including frequency, percentage, mean, maximum value, minimum value, standard deviation, and hypothesis testing of research through multiple regression analysis. The research findings indicate that 1) governance factors are related to earning quality, where the size of the board of directors has a positive correlation with earning quality when measured by earning persistence and earning smoothness, with statistical significance at the 0.05 level. Meanwhile, the proportion of independent directors has a negative correlation with earning quality when measured by earning smoothness. 2) Shareholder structure is related to earning quality, where a concentrated ownership structure has a positive correlation with earning quality when measured by earning persistence, earning predictability with statistical significance at the 0.01 level, and earning smoothness, with statistical significance at the 0.05 level. In contrast, a dispersed ownership structure has a negative correlation with earning quality when measured by earning persistence, earning predictability with statistical significance at the 0.01 level, and earning smoothness with statistical significance at the 0.05 level. 3) Capital structure has a negative correlation with earning quality when measured by earning persistence, earning predictability with statistical significance at the 0.05 level, and earning smoothness with statistical significance at the 0.01 level.
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