The influence of unconditional accounting conservatism and corporate governance on real earning management

Main Article Content

Surachai Am-ugsorn
Karaket Sutho
Chananut Thongsri
Nutkamon Thongkhow
Thanawan Ratchaniwong

Abstract

          This research aims to study the influence of unconditional accounting conservatism to study the influence of corporate governance and to study the interaction effect of unconditional accounting conservatism and corporate governance, on the real earning management. The 348 companies listed on the Stock Exchange of Thailand in 2019 were studied.


          The Hayn's (1995) model was used to measure unconditional accounting conservatism, the Roychowdhury (2006) model was used to measure real earning management, and the CG Score was used to measure good corporate governance. Descriptive statistics, correlation analysis and multiple regression analysis were used to examine relationships among factors. The research found that unconditional accounting conservatism was a positive influence on the real earning management, and when the company use unconditional accounting conservatism in conjunction with good corporate governance, this can reduce the positive influence. Therefore, investors should choose to invest in companies with good corporate governance in order to avoid the effects of profit manipulation by management.

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บทความวิจัย (Research article)

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