BOARD COMPOSITION FIRM CHARACTERISTICS AND EARNINGS MANAGEMENT OF THAI LISTED COMPANIES

Abstract

The main objective of this research is to study the effect of board composition and firm characteristics on earnings management of the listed companies of Thailand using 1,167 samples during 2015 – 2017 from listed companies in the Stock Exchange of Thailand, all of which are non-financial companies. In this study, earnings management is represented by discretionary accruals which are calculated by cross-sectional modified Jones model (Dechow et al. 1995). This study focuses on six variable factors: (board size, board gender, board independent, firm size, leverage and profitability). Using multiple regression analysis to analyze the results. The results of this study show that board gender, firm size and Profitability have a statistically significant negative effect on earnings management. The results also reveal that board independent and leverage have a statistically significant positive effect on earnings management.