Influence of Firm Characteristics on Firm Value through Corporate Governance and Earnings Management of Listed Companies on the Stock Exchange of Thailand

Abstract

The study on causal relationship of firm characteristics that affects firm value through corporate governance and earnings management of companies listed on the Stock Exchange of Thailand. The research aims to study causal relationship of firm characteristics, corporate governance, and earnings management that affect firm value of companies listed on the Stock Exchange of Thailand. Was conducted corporate governance disclosure in accordance with notification of the Stock Exchange of Thailand Re: Principles of corporate governance, 2017. Information in annual registration statement (Form 56-1), annual financial statement, footnotes to financial statement, corporate governance report, and sustainability report in 2018 of 468 companies listed on the Stock Exchange of Thailand were studied with the multiple indicators and multiple causes (MIMIC) model. The findings from the study showed that firm characteristics variable, corporate governance variable, and earnings management variable had influence on firm value both directly and indirectly significantly. It was also found that an increase in firm characteristics resulted in corporate governance and an increase in firm value accordingly. Meanwhile, it was found that an increase in firm characteristics affected a decrease in earnings management.