Earnings Management, Cost of Equity Capital and Corporate Governance: An Empirical Analysis of Thai Listed Companies

Abstract

This study has three main objectives: (i) estimate earnings management of Thai listed firms during the period 2003 to 2010, (ii) investigate the relationship between corporate governance and earnings management, and (iii) examine the influence of earnings management and corporate governance on the cost of equity capital. The population of this study comprises all listed companies on the Stock Exchange of Thailand during the period 2003-2010, with the exception of financial and insurance groups, listed companies on the Market for Alternative Investments (MAI), listed companies under rehabilitation and companies under property fund. The final sample for this study consists of 3,120 firms-years.