Relationship between Firm Characteristics, Debt Level and Earnings Quality of Listed Companies in the Stock Exchange of Thailand with the Moderating Effect of Corporate Governance
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This research aimed to investigate the relationship between firm characteristics, debt level, and earnings quality (EQ), and the moderating effect of corporate governance (CG) of listed companies in The Stock Exchange of Thailand. The accruals quality which is the measure of earnings quality was analyzed using the model developed by McNichols (2002) and used in Francis, et al. (2005). The results showed that size had a positive relationship with EQ and debt level and growth had a negative relationship with debt level. In addition, debt level had a negative relationship with EQ, that is, the company tends to have lower EQ as it incurs more debt. Moreover, this research found that CG had a negative effect on the relationship between debt level and EQ.
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