FINANCIAL RESTATEMENTS OF THAI LISTED COMPANIES: REASONS AND DATA ATTRIBUTES (RESOURCES, TECHNOLOGY, AND FINANCE INDUSTRIES)
Keywords:
Financial Restatement, Financial Restatement due to Error Correction, Data Attributes of Error CorrectionAbstract
This research studies the reasons and data attributes of Thai companies listed in the Stock Exchange of Thailand during the period of 2014-2015. The purpose of this study is to examine why companies restated their financial statements and the data profile of such companies. A comparison is made between companies that restate due to policy change and error correction in terms of size and profitability. In addition, it analyzes the underlying cause of companies that restate due to error corrections. Further, it provides recommendation to examine the real cause of the error in financial statements in three industries: Resources, Technology, and Finance. The result of this study indicates that smaller firms were found more frequently than larger firms in restatement due to change in accounting standard and error correction. In addition, firms with operating loss were found to have more financial restatement due to change in accounting policy and error correction than firms with operating profit. Also, attributes of data in financial restatement because of correction of error vary with the majority from the subsidiaries. Furthermore, the firms with highergrowth will lessen restatement due to error. Hence, firms with operating loss tend to give rise to restatement owing to error correction.
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