Opportunistic or Beneficial Earnings Management of Good Corporate Governance Score Enterprises in Thailand
Keywords:
Good Corporate Governance Score, Earnings Management, Opportunistic Earnings, Beneficial Earnings ManagementAbstract
This research aimed to study effectiveness factors of directors’ board, shareholder’s structure and executive’s compensation influencing on earnings management. Another objective was to study discretionary accruals of the enterprises with an excellent, very good, and good governance score, it was the opportunistic or beneficial earnings management. Research methodology was the quantitative method analyzed by using the Panel Data Random Effects Model, the samples were selected from listed companies in the Stock Exchange of Thailand during 2009-2013. The results indicate that the proportion of directors with expertise in finance and accounting, and the number of board’s meeting affected on the increasing level of earnings management while the proportion of audit committee with expertise in finance and accounting reduced the earnings management. Additionally, it showed that the earnings management in Thailand was an opportunistic earnings management since some discretionary accruals had the opposite result from their firm values.
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