A STUDY OF THE FACTORS AFFECTING TO MOTIVATION IN EARNINGS MANAGEMENT IN THAILAND STOCK EXCHANGE
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Published:
Sep 1, 2019
Keywords:
Earnings Management Motivation Discretionary Accruals Thailand Stock Exchange
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Abstract
This research aimed to study of the factors affecting to motivation in earnings management in Thailand Stock Exchange. Research methodologies used within this study is qualitative research. In the quantitative method research adopted by using multiple regression analysis. The samples were listed companies in the Stock Exchange of Thailand during 2012-2016 consisted of 1,665 firm-year observations. Some of the factors that affect earnings management motivation used in this study is a firm’s growth, profitability (ROA) ,free cash flow, leverage and firm size and earnings management using discretionary accruals by the Yoon et al. (2006) model measurement. The research findings were 1) cash flow have negative while has profitability (ROA) positive and significant effect on earning management 2) firm’s growth and firm size have positive while leverage negative but not significant effect on earnings management.
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How to Cite
Thunputtadom, P. ., Kiniphan, P. ., & Sirikanerat, S. . (2019). A STUDY OF THE FACTORS AFFECTING TO MOTIVATION IN EARNINGS MANAGEMENT IN THAILAND STOCK EXCHANGE. Journal of Humanities and Social Sciences Thonburi University, 13(3), 145–157. Retrieved from https://so03.tci-thaijo.org/index.php/trujournal/article/view/214074
Section
บทความวิจัย
ผลงานที่ปรากฎในวารสารฉบับนี้เป็นลิขสิทธิ์เฉพาะส่วนบุคคลของผู้เขียนซึ่งต้องรับผิดชอบต่อผลทาง กฎหมายที่อาจเกิดขึ้นได้และไม่มีผลต่อกองบรรณาธิการ
References
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ตลาดหลักทรัพย์แห่งประเทศไทย. (2561). การดำเนินคดี. สืบค้นเมื่อ 28 กุมภาพันธ์ 2560, จาก http://www.sec.or.th/ TH/Enforcement/ Pages/enforce_search.aspx
ทัศนีย์นารถ ลิ้มสุทธิวันภูมิ และ มยุขพันธุ์ ไชยมั่นคง .(2558). ความสัมพันธ์ระหว่างค่าตอบแทนของผู้บริหารกับการจัดการกำไร :กรณีศึกษาบริษัทในกลุ่มพลังงานและสาธารณูปโภค. วารสารวิชาการมหาวิทยาลัยธนบุรี. 9(19): 147-157.
ธนาคารแห่งประเทศไทย. (2561). เงินลงทุนโดยตรงจากต่างประเทศ จำแนกตามประเภทธุรกิจในประเทศไทย. สืบค้นเมื่อ 28 กุมภาพันธ์ 2560, จาก http://www2.bot.or.th/statistics/botwebstat.aspx?reportID=656&language=TH
พลวัฒน์ เลิศกุลวัฒน์. (2561). การศึกษาการจัดการกำไร และการเสนอขายหลักทรัพย์เพิ่มทุนในตลาดเศรษฐกิจใหม่: หลักฐานจากประเทศไทย. วารสารวิชาการมหาวิทยาลัยธนบุรี. 12 (29): 9-21.
Alareeni, B., & Aljuaidi, O. (2014). The Modified Jones & Yoon Models in Detecting Earnings Management in Palestine Exchange (PEX). International Journal of Innovation & Applied Studies, 9(4 ): 1472-1484.
Alexander, Nico & Hengky.(2017). Factors Affecting Earnings Management in the Indonesian Stock Exchange. Journal of Finance & Banking Review, 2(2): 8-14.
Ali, S. M., Salleh, N. M., & Hassan, M. S. (2008). Ownership Structure & Earnings Management in Malaysian Listed Companies: The Size Effect. Asian Journal of Business & Accounting, 1(2): 89 -116.
Ardekani, A. M., Younesi, N., & Hashemijoo, M. (2012). Acquisition, Earnings Management & Firm’s Performance: Evidence from Malaysia. Journal of Business Studies Quarterly, 4(1): 91-110.
Ardison, K. M., Martinez, A. L., & Galdi, F. C. (2012). The Effect of Leverage on Earnings Management in Brazil. Advances in Scientific & Applied Accounting. São Paulo,5(3): 305-324.
Bassiouny, S. W., Soliman, M. M., & Ragab, A. (2016). The Impact of Firm Characteristics on Earnings Management: an Empirical study on The Listed Firms in Egypt. The Business & Management Review, 7(2): 91-101.
Black, K. (2006). Business Statistics for Contemporary Decision Making (4th ed.). USA : John Wiley & Son.
Debnath. P.(2017). Assaying the Impact of Firm's Growth & Performance on Earnings Management: An Empirical Observation of Indian Economy. International Journal of Research in Business Studies & Management. 4(2): 30-40.
Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics. 18 (1994): 3-42.
Dechow, P., Ge, W., & Schr&, C. (2010). Underst&ing Earnings Quality: A Review of the Proxies, Their Determinants & Their Consequences. Journal of Accounting & Economics,50 (2–3): 344–401.
Dechow, P., Kothari, S., Watts, R., (1998). The Relation Between Earnings & Cash Flows. Journal of Accounting & Economics. 25 (1998): 133–168.
Dechow, P., M.; ge, Weili.(2006). The persistence of earnings & cash flows & the role of special items: Implications for the accrual anomaly. Review of Accounting Studies, 11(2): 253-296.
Fairfield, P.M., J.S. Whisenant, & T.L. Yohn, (2003). Accrued Earnings & Growth: Implications for Future Profitability & Market Mispricing. Accounting Review, 78(1): 353-371.
Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature & Its Implications for St&ard Setting. Accounting Horizons, 13(4): 365-383.
Ibrahim, I., Bala, H., & Garba, J. (2015). Impact of Earnings Management on Dividend Policy of Listed Non-Financial Companies in Nigeria. Accounting Frontier (the Official Journal of Nigerian Accounting Association), 17(2): 1-15.
Jaggi, B., & Tsui, J. (2007). Insider Trading, Earnings Management & Corporate Governance: Empirical Evidence Based on Hong Kong Firms. Journal of International Financial Management & Accounting. 18(3): 92-222.
Jensen, M., & Meckling, W. (1976). Theory of the Firm: Managerial Behavior, Agency Theory of the Firm: Managerial Behavior, Agency Costs & Ownership Structure. Journal of Financial Economics, 3: 305–360.
Jones, J. (1991). Earnings Management during Import Relief Investigations, Journal of Accounting Research, 29: 193-228.
Leuz, C., N & a, D., & Wysocki, P. D. (2003). Earnings Management & Investor Protection: An International Comparison. Journal of Financial Economics. 69: 505-527.
Levitt, A. (1998), The numbers game. Securities and Exchange Commission, Remarks by Chair Arthur Levitt at New York University Center of Law and Business.
Mckee, T. E. (2005). What is Earnings Management.?, Earnings Management: An Executive Perspective (Edition1st ). Ohio: Sage Publications.
Nelson, M.W. Elliott, J.A. & Tarpley, R.L. (2002) Evidence from Auditors about Manager’s & Auditor’s Earnings Management Decisions. Accounting Review, 77: 175-202.
Pashei, A., & Talebnia, G. A. (2015). The Investigation of the Relationship between Discretionary Accruals, Growth, & Future Firm Performance in Listed Firms at Tehran Stock Exchange (TSE). International Research Journal of Applied & Basic Sciences, 9(9): 1605-1613.
Poorzanjani, Z. A. (2016). Studying the Effect of Company’s Growth on Pricing of Discretionary Accruals. International Journal of Humanities & Cultural Studies , Special (May), 2056-2072.
Rehman, A., & Shah, S. A. (2013). Board Independence, Ownership Structure & Firm Performance: Evidence from Pakistan. Interdisciplinary Journal of Contemporary Research in Business. 5(3): 832-845.
Sayari, S., Omri, A., Finet, A., & Harrathi, H. (2013). The Impact of Earnings Management on Stock Returns: The Case of Tunisian Firms. International Research Journal of Accounting & Auditing, 1(1): 7-21.
Selahudin, N. F., Zak, N. B., & Sanus, Z. M. (2014). Remodelling the Earnings Management with the Appearance of Leverage, Financial Distress & Free Cash Flow: Malaysia & Thail& Evidences. Journal of Applied Sciences, 14(21): 2644-2661.
Ujah, N. U., & Brusa, J. (2014). Earnings Management, Financial Leverage, & Cash Flow Volatility: An Analysis by Industry. Journal of Business & Economics, 5(3): 338-348.
Uwuigbe, U., O.R. Uwuigbe & P.S. Daramola.(2015). Corporate governance & capital structure: Evidence from listed firms in Nigeria stock exchange. Advances in Management,7(2): 44-49.
Verbruggen, S., Christaens, J. & Milis, K. (2008). Earnings management: a literature review. Hub Research paper. 14: 1-27.
Watts, R. L., & Zimmerman, J. L. (1978). Towards a Positive Theory of the Determination of Accounting St&ards. The Accounting Review,(January): 112-134.
Yoon, S., Miller, G., & Jiraporn, P. (2006). Earnings Management Vehicles for Korean Firms. Journal of International Financial Management & Accounting, 17(2): 85-109.
Zhang, X. L. (2016). Study on Cash Flow Manipulation & Earnings Management-Based on Empirical Evidence of China Listed Companies’ SEO. International Journal of Business & Social Science, 7(9): 45-54.
Translated Thai References
Nakhonkwang, J. (2016). Class Action on Securities Litigation. (Master of Laws Thesis,Thammasat University). (in Thai)
Stock Exchange of Thail&. (2017). Enforcement. Retrieved February 28, 2017, from http://www.sec.or.th/TH/Enforce ment/Pages/enforce_search.aspx (in Thai)
Limsuthiwanpum, T., & Chaimankong, M. (2015). The Relationship Between Compensation & Earnings Management: Energy & Utility Sector Case. Journal of Thonburi University. 9(19): 148-157. (in Thai)
Bank of Thailand. (2017). Foreign Direct Investment :FDI. Retrieved February 28, 2017, from http://www2.bot.or.th/ statistics/botwebstat.aspx?reportID=656&language=TH (in Thai)
Lerskullawat, P. (2561). Earnings Management and Seasoned Equity Offerings in an Emerging Market : Evidence from Thailand. Journal of Thonburi University, 12(29): 9-21. (in Thai)
ตลาดหลักทรัพย์แห่งประเทศไทย. (2561). การดำเนินคดี. สืบค้นเมื่อ 28 กุมภาพันธ์ 2560, จาก http://www.sec.or.th/ TH/Enforcement/ Pages/enforce_search.aspx
ทัศนีย์นารถ ลิ้มสุทธิวันภูมิ และ มยุขพันธุ์ ไชยมั่นคง .(2558). ความสัมพันธ์ระหว่างค่าตอบแทนของผู้บริหารกับการจัดการกำไร :กรณีศึกษาบริษัทในกลุ่มพลังงานและสาธารณูปโภค. วารสารวิชาการมหาวิทยาลัยธนบุรี. 9(19): 147-157.
ธนาคารแห่งประเทศไทย. (2561). เงินลงทุนโดยตรงจากต่างประเทศ จำแนกตามประเภทธุรกิจในประเทศไทย. สืบค้นเมื่อ 28 กุมภาพันธ์ 2560, จาก http://www2.bot.or.th/statistics/botwebstat.aspx?reportID=656&language=TH
พลวัฒน์ เลิศกุลวัฒน์. (2561). การศึกษาการจัดการกำไร และการเสนอขายหลักทรัพย์เพิ่มทุนในตลาดเศรษฐกิจใหม่: หลักฐานจากประเทศไทย. วารสารวิชาการมหาวิทยาลัยธนบุรี. 12 (29): 9-21.
Alareeni, B., & Aljuaidi, O. (2014). The Modified Jones & Yoon Models in Detecting Earnings Management in Palestine Exchange (PEX). International Journal of Innovation & Applied Studies, 9(4 ): 1472-1484.
Alexander, Nico & Hengky.(2017). Factors Affecting Earnings Management in the Indonesian Stock Exchange. Journal of Finance & Banking Review, 2(2): 8-14.
Ali, S. M., Salleh, N. M., & Hassan, M. S. (2008). Ownership Structure & Earnings Management in Malaysian Listed Companies: The Size Effect. Asian Journal of Business & Accounting, 1(2): 89 -116.
Ardekani, A. M., Younesi, N., & Hashemijoo, M. (2012). Acquisition, Earnings Management & Firm’s Performance: Evidence from Malaysia. Journal of Business Studies Quarterly, 4(1): 91-110.
Ardison, K. M., Martinez, A. L., & Galdi, F. C. (2012). The Effect of Leverage on Earnings Management in Brazil. Advances in Scientific & Applied Accounting. São Paulo,5(3): 305-324.
Bassiouny, S. W., Soliman, M. M., & Ragab, A. (2016). The Impact of Firm Characteristics on Earnings Management: an Empirical study on The Listed Firms in Egypt. The Business & Management Review, 7(2): 91-101.
Black, K. (2006). Business Statistics for Contemporary Decision Making (4th ed.). USA : John Wiley & Son.
Debnath. P.(2017). Assaying the Impact of Firm's Growth & Performance on Earnings Management: An Empirical Observation of Indian Economy. International Journal of Research in Business Studies & Management. 4(2): 30-40.
Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics. 18 (1994): 3-42.
Dechow, P., Ge, W., & Schr&, C. (2010). Underst&ing Earnings Quality: A Review of the Proxies, Their Determinants & Their Consequences. Journal of Accounting & Economics,50 (2–3): 344–401.
Dechow, P., Kothari, S., Watts, R., (1998). The Relation Between Earnings & Cash Flows. Journal of Accounting & Economics. 25 (1998): 133–168.
Dechow, P., M.; ge, Weili.(2006). The persistence of earnings & cash flows & the role of special items: Implications for the accrual anomaly. Review of Accounting Studies, 11(2): 253-296.
Fairfield, P.M., J.S. Whisenant, & T.L. Yohn, (2003). Accrued Earnings & Growth: Implications for Future Profitability & Market Mispricing. Accounting Review, 78(1): 353-371.
Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature & Its Implications for St&ard Setting. Accounting Horizons, 13(4): 365-383.
Ibrahim, I., Bala, H., & Garba, J. (2015). Impact of Earnings Management on Dividend Policy of Listed Non-Financial Companies in Nigeria. Accounting Frontier (the Official Journal of Nigerian Accounting Association), 17(2): 1-15.
Jaggi, B., & Tsui, J. (2007). Insider Trading, Earnings Management & Corporate Governance: Empirical Evidence Based on Hong Kong Firms. Journal of International Financial Management & Accounting. 18(3): 92-222.
Jensen, M., & Meckling, W. (1976). Theory of the Firm: Managerial Behavior, Agency Theory of the Firm: Managerial Behavior, Agency Costs & Ownership Structure. Journal of Financial Economics, 3: 305–360.
Jones, J. (1991). Earnings Management during Import Relief Investigations, Journal of Accounting Research, 29: 193-228.
Leuz, C., N & a, D., & Wysocki, P. D. (2003). Earnings Management & Investor Protection: An International Comparison. Journal of Financial Economics. 69: 505-527.
Levitt, A. (1998), The numbers game. Securities and Exchange Commission, Remarks by Chair Arthur Levitt at New York University Center of Law and Business.
Mckee, T. E. (2005). What is Earnings Management.?, Earnings Management: An Executive Perspective (Edition1st ). Ohio: Sage Publications.
Nelson, M.W. Elliott, J.A. & Tarpley, R.L. (2002) Evidence from Auditors about Manager’s & Auditor’s Earnings Management Decisions. Accounting Review, 77: 175-202.
Pashei, A., & Talebnia, G. A. (2015). The Investigation of the Relationship between Discretionary Accruals, Growth, & Future Firm Performance in Listed Firms at Tehran Stock Exchange (TSE). International Research Journal of Applied & Basic Sciences, 9(9): 1605-1613.
Poorzanjani, Z. A. (2016). Studying the Effect of Company’s Growth on Pricing of Discretionary Accruals. International Journal of Humanities & Cultural Studies , Special (May), 2056-2072.
Rehman, A., & Shah, S. A. (2013). Board Independence, Ownership Structure & Firm Performance: Evidence from Pakistan. Interdisciplinary Journal of Contemporary Research in Business. 5(3): 832-845.
Sayari, S., Omri, A., Finet, A., & Harrathi, H. (2013). The Impact of Earnings Management on Stock Returns: The Case of Tunisian Firms. International Research Journal of Accounting & Auditing, 1(1): 7-21.
Selahudin, N. F., Zak, N. B., & Sanus, Z. M. (2014). Remodelling the Earnings Management with the Appearance of Leverage, Financial Distress & Free Cash Flow: Malaysia & Thail& Evidences. Journal of Applied Sciences, 14(21): 2644-2661.
Ujah, N. U., & Brusa, J. (2014). Earnings Management, Financial Leverage, & Cash Flow Volatility: An Analysis by Industry. Journal of Business & Economics, 5(3): 338-348.
Uwuigbe, U., O.R. Uwuigbe & P.S. Daramola.(2015). Corporate governance & capital structure: Evidence from listed firms in Nigeria stock exchange. Advances in Management,7(2): 44-49.
Verbruggen, S., Christaens, J. & Milis, K. (2008). Earnings management: a literature review. Hub Research paper. 14: 1-27.
Watts, R. L., & Zimmerman, J. L. (1978). Towards a Positive Theory of the Determination of Accounting St&ards. The Accounting Review,(January): 112-134.
Yoon, S., Miller, G., & Jiraporn, P. (2006). Earnings Management Vehicles for Korean Firms. Journal of International Financial Management & Accounting, 17(2): 85-109.
Zhang, X. L. (2016). Study on Cash Flow Manipulation & Earnings Management-Based on Empirical Evidence of China Listed Companies’ SEO. International Journal of Business & Social Science, 7(9): 45-54.
Translated Thai References
Nakhonkwang, J. (2016). Class Action on Securities Litigation. (Master of Laws Thesis,Thammasat University). (in Thai)
Stock Exchange of Thail&. (2017). Enforcement. Retrieved February 28, 2017, from http://www.sec.or.th/TH/Enforce ment/Pages/enforce_search.aspx (in Thai)
Limsuthiwanpum, T., & Chaimankong, M. (2015). The Relationship Between Compensation & Earnings Management: Energy & Utility Sector Case. Journal of Thonburi University. 9(19): 148-157. (in Thai)
Bank of Thailand. (2017). Foreign Direct Investment :FDI. Retrieved February 28, 2017, from http://www2.bot.or.th/ statistics/botwebstat.aspx?reportID=656&language=TH (in Thai)
Lerskullawat, P. (2561). Earnings Management and Seasoned Equity Offerings in an Emerging Market : Evidence from Thailand. Journal of Thonburi University, 12(29): 9-21. (in Thai)