Relationship between Corporate Governance and Earnings Quality: Case Study of Listed Companies in the Thailand Stock Exchange

Sasivimol Meeampol, Vimol Rodpetch, Phanthipa Srinammuang and Ausa Wongsorntham
Additional contact information
Sasivimol Meeampol: Kasetsart University, Thailand
Vimol Rodpetch: Kasetsart University, Thailand
Phanthipa Srinammuang: Kasetsart University, Thailand
Ausa Wongsorntham: Kasetsart University, Thailand

from ToKnowPress

Abstract: A good earnings quality is very significant as it leads to the effective disclosure and accordingly good corporate governance. This research attempts to utilize the association of newly-created Corporate Governance which measures from the Corporate Governance Scores of the Thai Institute of Directors (IOD) in the Stock Exchange of Thailand (SET) in the year 2011 as independent variable, which the higher IOD score usually reflext the higher level of Corporate Governance and earnings quality as the dependent variable which used the variance and risk, which measured using standard deviation. Standard deviation is a standard measure of investment risk. This IOD’s score compares almost all listed firms with the criteria established in the principles of corporate governance. The chi-square was used to test this relationship at 95% confidence. Results of analysis highlights that the standard deviation of firms listed in the SET for year 2011 is have the associated with IOD Score. In summary, the high Corporate Governance measured by IOD score shows earnings quality. In this study means that the firm which has a high IOD score, which means high corporate governance will have earnings quality which measure by using standard deviation. However, the results of this study shows the relationship between the two variables. The reason behinds this result may due to the fact that eventhough there are many ways to measure quality earnings, for our study, we use only standard deviations to measure earnings quality.

Keywords: corporate governance; earnings quality; standard deviation; SET Thailand (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-460.pdf full text (application/pdf)
http://www.toknowpress.net/ISBN/978-961-6914-02-4/MakeLearn2013.pdf Conference Programme (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tkp:mklp13:1345-1353

Access Statistics for this chapter

More chapters in Active Citizenship by Knowledge Management & Innovation: Proceedings of the Management, Knowledge and Learning International Conference 2013 from ToKnowPress
Bibliographic data for series maintained by Maks Jezovnik ().