EFFECTS OF CREATIVE ACCOUNTING AND CORPORATE GOVERNANCE ON EARNINGS QUALITY OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND : SERVICE AND TECHNOLOGY INDUSTRY

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 104 companies in SET service industry group and technology industry group. The data collection was done by collecting the data in the financial reports and the companies’ governance levels announced in the Corporate Governance Report of Thai Listed Companies (CGR).

          The research got 3 major findings. Firstly, the earning management technique that affected the quality of earnings most for service industry group was recording bogus revenues and recording revenue too soon for technology industry group. Secondly, the risk of being an agent affected the quality of earnings when analyzed by using total net operation accruals method in SET service industry group and technology industry group. Thirdly, corporate governance did not affect the quality of earnings in SET service industry group but affect the quality of earnings in technology industry group when analyzed by using working capital accruals method and total net operation accruals method.