The Impact of Accounting Revision of Year 2007-2009 to Quality of Earnings and the Response of Investors of Listed Company in Stock Exchange of Thailand

Abstract

The purposes of this research were to study the impact of accounting revision of year 2007-2009 to quality of earnings and the response of investors of listed companies in Stock Exchange of Thailand. The study has been compared earnings quality, cumulative abnormal return and abnormal trading volume between before and after the accounting revised of year 2007-2009. All data has been analyzed and tested by the descriptive statistics and dependent paired sample t-test. The results showed that the earnings quality in the period after the accounting revision was higher than the earning quality in the period before the accounting revision. On the other hand, the results of the comparison of the cumulative abnormal return and abnormal trading volume in 3 days surrounding annual earnings announcement date between before and after the accounting revision did not differ significantly.