EFFECTS OF CREATIVE ACCOUNTING AND CORPORATE GOVERNANCE ON EARNINGS QUALITY OF PROPERTY AND CONSTRUCTION INDUSTRY GROUP IN THE STOCK EXCHANGE OF THAILAND

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กมลชนก สกุลเจริญ
ฐิตาภรณ์ สินจรูญศักดิ์

Abstract

The research study aimed to identify the effects of earning management techniques, earning management incentives, and corporate governance, on earning quality. The research was done through the analyses of earnings by using 3 methods, working capital accruals, total net operation accruals and total accruals. The population of the study was the listed companies in the Stock Exchange of Thailand (SET). The selected samples were 75 companies in SET property and construction industry group. The data collection was done by collecting the data in the financial reports of the periods between 2011 and 2017 and the companies’ governance levels announced in the Corporate Governance Report of Thai Listed Companies (CGR). The methods used in testing the assumptions were simple regression analysis and multiple linear regression analysis.


The research got 3 major findings. Firstly, recording unrealized income and delaying recognizing revenue of current period to future periods affected the quality of earnings when analyzed by using total net operation accruals method and delaying recognizing expenses of current period to future periods affected the quality of earnings when analyzed by using total accruals method. Secondly, the risk of being an agent affected the quality of earnings when analyzed by using working capital accrual method. Thirdly, corporate governance did not affect the quality of earnings when analyzed by using working capital accruals method, total net operation accruals method and total accruals method.

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