THE AFFECT OF IMPLEMENTING ACCOUNTING STANDARDS ON EARNINGS QUALITY AND CORPORATE IMAGE OF THAI LISTED COMPANIES

Abstract

Accounting is a process that contributes to generating financial information that is useful to economic decision-making of the internal and external users. Such usefulness of financial information comes from its qualitative characteristics which include understandability, relevance, reliability, and comparability. All of these characteristics form the integral part of the accounting framework. The framework, one of the essences of the accounting standards, plays an important role in preparing and presenting financial reporting to all parties concerned. One of the financial information which is of high interest among investors especially in the Stock Exchange of Thailand is net income or earnings which reflects the operating performance of a business firm. Thus, the objective of the research is to study the effect of implementing accounting standards on earnings quality; and the effect of earnings quality on the corporate image of the companies listed on the Stock Exchange of Thailand. Data collection was made through the questionnaires completed mostly by the accounting executives of such listed companies. The findings of the research are as follows: the implementation of accounting standards is positively related to earnings quality. earnings quality is positively related to the corporate image of the listed companies. In addition, it is suggested that such findings would be of help to the Federation of Professional Accountancy under the Royal Patronage in that they will contribute to the improving the Thai accounting standards to meet with the ever-changing environment of business in Thailand.