The study of profitability that affects the earnings quality of listed companies on the Stock Exchange of Thailand

Abstract

This research article is intended to study profitability that affects the earnings quality of listed companies on the Stock Exchange of Thailand. It is the use of quantitative research model by studying from secondary which collects data from financial statements, annual information (Form 56-1) and annual reports of companies listed on the Stock Exchange of Thailand and SETSMART since 2020 to 2022, throughout the 3 years, there were 465 companies, 1,395 firm-year observations. The statistics used in the research are 1. descriptive statistics and 2. Inferential statistics consist of the analysis of the Pearson coefficient and the analysis of multiple regression equations.

The results of the research found that Profitability affects the quality of profits of listed companies in the Stock Exchange of Thailand, including the return on assets (ROA), affecting the same direction to the quality of profit measured by the method of outstanding transactions from working capital. Operating Cashflows affects the opposite direction to the quality of profit measured by the method of outstanding transactions from working capital. And the rate of return from assets Gross margin and net profit affect in the same direction to the quality of profit measured by the method of outstanding transactions from net operations. The cash to profit ratio affects the opposite direction to the quality of profit measured by the method of outstanding items from net operations significantly at 0.01