The Analysis of Casual Factors Affecting Sustainable Growth of Listed Companies on the Stock Exchange of Thailand

Main Article Content

Orawon Chuamaungphan
Montree Chuachoo

Abstract

This research study aims to analyze the causal factors affecting the sustainable growth of companies listed on the Stock Exchange of Thailand. The quantitative research method was employed in this study. The samples used in this research method were all of industrial companies listed on the Stock Exchange of Thailand from 2013-2017. The research population included 537 companies, but only 334 companies met the criteria. The study used a linear structural equation model for path analysis using a software program. The study found that the quality of an audit, ownership structure, and a good internal control system had a negative relationship to earning management. This was due to good internal control systems or quality auditing which could decrease earning management. If the business had an ownership structure, foreign investors or trading investors, it would have good corporate governance which could decrease earning management. This study also found that earning management had a negative relationship to sustainable growth. This means that the cost of capital which came mainly from debts would allow the business to expand and have liquidity in the operation, enabling the business to grow continuously and sustainably. However, this study did not find the relationship of capital structure affects earning management. It also did not find a relationship between internal control systems and earning management. In addition, it did not find any impact of internal control systems upon sustainable growth.

Downloads

Download data is not yet available.

Article Details

How to Cite
Chuamaungphan , O., & Chuachoo , M. (2021). The Analysis of Casual Factors Affecting Sustainable Growth of Listed Companies on the Stock Exchange of Thailand. Journal of Management Science Chiangrai Rajabhat University, 16(1), 86-108. Retrieved from https://so03.tci-thaijo.org/index.php/jmscrru/article/view/235104
Section
Academic Articles
Author Biographies

Orawon Chuamaungphan , Faculty of Accounting, Sripatum University.

Ph.D. Candidate (Accounting), Sripatum University. Currently an Assistant Professor in School of Accounting, Chiangrai Rajabhat University.

Montree Chuachoo , Faculty of Accounting, Sripatum University.

Ph.D.  (Accounting), Chulalongkorn University, (1997). Currently a Lecturer in Accounting Program, Faculty of Accounting, Sripatum University.

References

Ahmad Ahmadpour1, Masoumeh Shahsavari. (2016). Earnings management and the effect of earnings quality in relation to bankruptcy level (Firms listed at the tehran stock exchange). Iranian Journal of Management Studies (IJMS), 9(1), 77-99.

Chih-Ying Chen, Chan-Jane, Lin and Yu-Chen, Lin. (2008). Audit partner yenure, audit firm tenure, and discretionary accruals: Does long Auditor tenure impair earnings quality?. Contemporary accounting research explore this. View Issue TOC, 25(2), 415–445.

Dechow, P. M. and Schrand C. M. (2000). Earnings quality. United States of America : The Research Foundation of CFA Institute.

Doyle Jeffrey, (2007). Accruals quality and internal control over financial reporting. The Accounting Review, 82(2), 1141-1170.

Febriela Sirait Sylvia Veronica Siregar. (2014). Dividend payment and earnings quality : Evidence from Indonesia. International Journal of Accounting and Information Management, 22(2), 103 – 117.

Han, Li. (2015). Managerial ability and internal control quality: Evidence from China. International Journal of Financial Research, 6(2), 2015.

Hashim, H. A. and Suseladevi, S. (2006). Corporate governance, ownership structure & earning quality : Malaysian evidence, Kuala Lumpur:, Faculty of Management & Economics, University Malaya.

Hafiza Aishah Hashim. (2014). Corporate governance ownership structure and earnings Quality : Malaysian evidence. Kuala Lumpur: Faculty of Business and Accountancy, Universiti Malaya.

Iram, Naz. (2018). Impact of firm size and capital structure on earnings management: evidence from pakistan. International Journal of Contemporary Business Studies, 2(12), 20-31.

Jensen, M and Meckling, W. (1976). Theory of the firm: managerial behavior, agency costs and capital structure. Journal of Financial Economics, 3(1), 11- 25

Jun, Guo, Pinghsun, Huang, Yan, Zhang, et al. (2015). Foreign ownership and real earnings management : evidence from japan. Journal of International Accounting Research, 14(2), 185-213.

Ken Y. Chen, Kuen-Lin Lin and Jian Zhou. (2005). Audit quality and earnings management for Taiwan IPO firms. Managerial Auditing Journal, 20(1), 86 – 104.

Koh, P-S. (2003). On the association between institutional ownership and aggressive corporate earnings management in Australia. The British Accounting Review, 35(2), 105-128

Li-Lun, Liu1 and Yu-Ting, Huang. (2016). The relationship between supply chain CPAs, CSR and discretionary accruals. International Business Research, 9(1), 1903-1915.

Mahdi, Noori and Mohamadreza Shorvarzy. (2015). The impact of the Internal control quality on cash flow and earnings quality. Indian Journal of Natural Sciences, 6(31), 201 - 2015.

Mohammad, Reza. (2016). Audit quality and earning management in Tehran Stock Exchange Listed Companies. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 142–149.

Rusmin, Rusmin. (2010). Auditor quality and earnings management : Singaporean evidence. Managerial Auditing Journal, 25(7), 618 – 638.

Serghiescua Laura, (2014). Determinant factors of the capital structure of a firm - an empirical analysis. Procedia Economics and Finance, 15(4), 1447 – 1457.

Sharma, S. V, et al. (2006). A common signaling cascade may underlie ‘addiction’ to the Src, BCR-ABL, and EGF receptor oncogenes. Cancer Cell, 10, 425–435.

Sulaiman, Mousellia, Aziz, Jaafarb and John, Goddardb. (2013). Accruals quality, stock returns and asset pricing : Evidence from the UK. International Review of Financial Analysis, 30(12), 203–213.

T. Velnampy and J. Aloy Niresh. (2012). The Relationship between capital structure & profitability. Global Journal of Management and Business Research, 12(13), 12 – 20

Velury, U. and Jenkins, D. S. (2006). Institutional ownership & the quality of earnings. Journal of Business Research, 59, 1043-1051.