Impact of Board Responsibility, Ownership Structure, Audit Quality and Earnings Quality on Stock Price of Listed Companies in the Stock Exchange of Thailand: A Case study of Service Industry and Property and Construction Industry

Abstract

The purpose of this study was to investigate effects of board responsibility, ownership structure, audit quality and earnings quality on stock price of listed companies in service industry and property & construction industry in the Stock Exchange of Thailand. Data were collected from the annual report of 190 companies in service industry and property & construction industry listed on the Stock Exchange of Thailand in 2017. Board size and proportion of board of directors who held the management position were used as proxies for board responsibility; proportion of institutional ownership was employed as representation for ownership structure. Audit fees and Big4 were used as proxies for audit quality, while total net operating accruals were calculated as earnings quality proxy. Statistics including frequency, percentage, mean, standard deviation, Pearson’s Product Moment Correlation Coefficient, and Multiple Linear Regression Analysis were employed in the analysis at the statistical significance level of .05.  The findings showed that board size of the sample had an average of 10.25. Proportion of board of directors who held the management position and proportion of institutional ownership had an average of 0.30 and 0.34 respectively. Auditor fees had an average of 3.034 million baht with 112 firms or 58.90% were from Big4 auditor whereas total net operating accruals had an average of 0.07. The findings also revealed that institutional ownership and audit fees had positive relation to stock price at lower level. Institutional ownership, audit fees and firm size affected stock price at the statistical significant level of .05.