Good Corporate Governance Effects on Earnings Management and Firm Value of Companies Listed on the Stock Exchange of Thailand

Abstract

This research aimed at examining the influences of good corporate governance on earnings management and firm value and influences of earnings management on firm value of companies listed on the Stock Exchange of Thailand. Sample size 468 companies Information in annual financial statement and annual registration statement (Form 56-1), in 2017. As the office of the Securities & Exchange Commission has issued Corporate Governance Code for listed companies 2017 in the year 2017 were studied with the Multiple Indicators and Multiple Causes (MIMIC) Model.

The results on every model showed significant fluences of good corporate governance, and earnings management on firm value 1) corporate governance code possessed a negative direct effect on earnings management and a positive direct effect on firm value, and 2) earnings management possessed a negative direct effect on firm value.