Firm attributes, earnings management, and anti-corruption activities in Thai-listed firms

Prawat Benyasrisawat

Afro-Asian Journal of Finance and Accounting, 2019, vol. 9, issue 4, 439-458

Abstract: The Thailand Stock Exchange Commission now requires listed firms to disclose their anti-corruption activities to the public. We explore the unique Thai approach to corruption in three steps. First we study the relationship between anti-corruption activities and firm attributes. Second, we examine the relationship between anti-corruption activities and the quality of earnings. Lastly, we investigate whether the reporting of anti-corruption activity conveys new information to the Thai stock market. The results indicate that firms with superior performance attributes and good corporate governance have higher levels of anti-corruption progress. Earnings management is greater for firms with low levels of anti-corruption progress. We also find evidence that anti-corruption announcements are associated with significant market reactions. This suggests that anti-corruption announcements contain new information that investors consider relevant for firm values.

Keywords: anti-corruption; corruption; earnings management; market alternative investment; market reaction; stock exchange of Thailand; SET; accounting; corporate governance; earnings quality; earnings persistence; firm value; Thailand. (search for similar items in EconPapers)
Date: 2019
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