The Relationship Between Board Characteristic, Audit Committee Characteristics and Earning Quality Of Listed Companies in the Stock Exchange Of Thailand

Abstract

The objective of this study is to study the relationship between the board characteristic , audit committee characteristic and earning quality by conducting a study of a sample of 372 companies registered in the Stock Exchange of Thailand in 2018 - 2019. The data are analyzed by using multiple regression analysis at the 95% confidence level test measuring the quality of the profit through discretionary accruals calculated by the Yoon Model (2006) model. The independent variables are the size of the board of directors, independence of the board of directors, the size of the audit committee and the numbers of meetings attended by the audit committee and the accounting or financial expertise of the audit committee. The control variables are size of business, financial risk and business growth. The dependent variable was earnings quality measured by discretionary accruals.The result of the study reveals that the independence of the board of directors has a statistically significant relationship with discretionary accruals with the opposite direction. The increase in the number of independent directors will result to decrease of earning management through discretionary accruals. As a result, the disclosure of financial reports are accurate and reliable. and size of business and business growth has a statistically significant relationship with discretionary accruals with the positive direction.