The Influence Analysis of Corporate Governance and Earnings Management on Firm Value of Listed Companies on The Stock Exchange of Thailand
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Abstract
This research article aims to the influence analysis of corporate governance and earnings management that affect the firm value of listed companies on The stock exchange of Thailand. was conducted through corporate governance disclosure in accordance with the notification of The Securities & Exchange Commission, Thailand on the corporate governance code for listed companies in 2017. The study was conducted using the information disclosure from an annual report (Form 56-1), financial statement, and footnotes to the financial statements of 468 companies listed on The Stock Exchange of Thailand, for quantitative study and analysis by using Multiple Indicators and Multiple Causes (MIMIC) Model.
The findings from the study showed corporate governance code possessed a negative direct effect on earnings management and a positive direct effect on firm value with the path coefficient equal to –0.14 and 0.29 respectively, board of directors is an important mechanism for driving and corporate governance of the business for good long-term performance. intensive disclosure of corporate governance could reduce the effort of earnings management and increase firm value. Therefore, companies should give importance to corporate governance disclosure as it helps build credibility and trust in companies. and earnings management possessed a negative direct effect on firm value with the path coefficient equal to –0.93. the better corporate governance, the fewer earnings management, and enhancing of the firm's value.
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