The Effect of Managerial Ownership on the Relationship between Disclosure of Key Audit Matters and Stock Returns of Listed Companies in the Stock Exchange of Thailand

Abstract

Background and Aims: The presentation of key audit matters is a tool for communicating information that is useful for the decision-making of financial statement users. The objectives are
1) to study the relationship between the disclosure of key audit matters and the return on securities of companies listed on the Stock Exchange of Thailand, and 2) to study the effect of executive shareholding on the relationship between the disclosure of key audit matters and the return on securities of companies listed on the Stock Exchange of Thailand.

Methodology: The research utilized secondary data collected from the annual information statement in the SETSMART database in 2021-2023, totaling 633 companies of listed companies in the Stock Exchange of Thailand. The statistics used in the research were descriptive statistics and inferential statistics, including correlation analysis and multiple regression analysis.

Results: The disclosure of material matters in the presentation of material matters in the audit has a positive relationship with the return on securities in the aspect of the price to earnings ratio at a statistical significance level of 0.05. The joint effect between the managerial ownership and the disclosure of material matters in the aspect of the number of material matters in the audit has a positive relationship with the return on securities in the aspect of the price to book value ratio at a statistical significance level of 0.05.

Conclusion: Disclosure of key audit matters in terms of the presentation format of key audit matters and the number of key audit matters reflects the responsibility of the auditor and management for transparency and clear, concise reporting of information, which positively affects the valuation of the company and increases the stock returns