The Relationship Between Key Audit Matters (KAM) disclosure and stock price of SET 100 companies from the Stock Exchange of Thailand
Keywords:
KAM disclosure, stock price, the Stock Exchange of ThailandAbstract
The study’s objectives aimed to investigate the extend of key audit matter (KAM) disclosure of auditor’s report, to test the different level of KAM disclosure between before (year 2014-2015) and after (year 2016-2017) regulation in Thailand, and to examine the relationship between KAM discloser after regulation and stock price of SET 100 companies from the Stock Exchange of Thailand. Samples of this study were 57 companies that had been in SET 100 during the years 2014 to 2017. Descriptive analysis, t-test, and multiple regression are used to analyze the data. The results show that, the level of KAM disclosure before regulation was 0.49 topic per year, while it was 2.25 topics per year after regulation. There was significantly different level of KAM disclosure between before and after regulation. More over, there was a positively significant relationship between number of KAM disclosure and the stock price.
References
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Tangruenrat, C. (2015). The Value of New Auditor’s Report, Thammasat Business Journal, 11(31),26-44
Tangruenrat, C. (2017). New Auditor’s Report: The 1styear Experiences, Thammasat Business Journal, 13(38), 5-21.
Tangruenrat, C. (2017). Understanding Audit Changes: An Important Issue in Audit.Accounting and Management Information Systems, 13(1), 128-152.
Theodore J. Mock, Jean Bédard, Paul J. Coram, Shawn M. Davis, Reza Espahbodi, and Rick C. Warne (2013) The Audit Reporting ตัวแบบ: Current Research Synthesis and Implications. AUDITING: A Journal of Practice & Theory, 32(1), 323-351.
Vanstraelen, A., Schelleman, C., Meuwissen, R., Hofmann, I. (2012). The Audit Reporting Debate: Seemingly Intractable Problems and Feasible Solutions.
Al-Thuneibat, A.A., Basheer, A.K., & Nedal, A.A. (2007). The effect of qualified auditors' opinions on share prices: evidence from Jordan. Managerial Auditing Journal, 23(1), 84-101
Baskerville, Rachel F. and Ó Hogartaigh, Ciaran and Porter, Brenda A. (2010). The Perceived Message in the Audit Report – An Experimental Exploration. retrieved from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1634478
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting Economics, 24, 3-37.
Bedard, J.,Gonthier-Besacier, N.,Schatt, A. (2014).Costs and Benefits of Reporting Key Audit Matters in the Audit Report: The French Experience.
Cheng, C.S., Hopwood, W.S., and McKeown, J. C. (1992). Nonlinearity and specification problem in unexpected earnings response regression ตัวแบบ. The Accounting Review, 67, 579-598
Christensen, B.E., Glover, S. M., and Wolfe C. J. (2014). Do Critical Audit Matter Paragraphs in the Audit Report Change nonprofessional Investors’ Decision to Invest? A Journal of Practice & Theory, 33(4), 71-93.
Church, B., S. Davis, and S. McCracken. 2008. The auditor’s reporting ตัวแบบ: A literature overview and research synthesis. Accounting Horizons, 22(1): 69–90.
Department of Business Development (2018). Law and reguration : 1197 code, from https://www.dbd.go.th/ewt_news.php?nid=951
Federation of Accounting Professions. (2017). Accounting Act : BE 2543 (2000). Retrieved October 14, 2018, from https://www.fap.or.th/upload/9414/JG6otiB33G.pdf
Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L. and Colle, S. D. (2010). Stakeholder Theory : The Sate of The Art. Cambridge University Press.
George, S., Melinda, T. (2015). Understanding audit reporting changes: introduction of Key Audit Matters. Accounting and Management Information Systems,14(1),128-152.
Gray, R.H., D Owen, and C. Adams.(1996). Accounting and Accountability. Hemel Hempstead: Prentice Hall.
Hayn, C. (1995). The information content of losses.Journal of Accounting and Economics, 20, 125-153
International Auditing and Assurance Standards Board (IAASB). (2011). Enhancing the value of auditor reporting: exploring options for change.Retrieved October 16, 2018, from https://www.ifac.org/publications-resources/enhancing-value-auditor-reporting-exploring-options-change
International Federation of Accountants (IFAC). (2017). Auditor Reporting Standards Implementation: Key Audit Matters. Retrieved October 16, 2018, from https://www.ifac.org/global-knowledge-gateway/audit-assurance/discussion/auditor-reporting-standards-implementation-key
Joseph F. Hair, Jr, William C. Black, Barry J. Babin, & Rolph E. Anderson. (2010), Multivariate Data Analysis 7th
Kohler, A., Ratzinger-sake, N., Theis, J. (2016). The Effects of Key Audit Matters on the Auditor’s Report’s Communicative Value: Experimental Evidence from Investment Professionals and Non-professional Investors, University of Duisburg-Essen. Retrieved October 22, 2018, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2838162
Kuaerattikarn Y. (2014). The Relationship Between The Composition of The Corporate Governance Mechanism and Performance Efficiency of The Listed Companies in the Stock Exchange of Thailand. Sripatum academic journal. 11(1), 41-50
Mehdi, M., Mahdi, S., Mehrollah, R. Mohsen, M. (2011). The effect of qualified audit report on share prices and returns: Evidence of Iran. African Journal of Business Management, 5(8), 3354-3360.
Paul J.Coram, Theodore J.Mock, Jerry L.Turner, Glen L.Gray. (2011). The Communicative Value of the Auditor’s Report.
Porter, Brenda.H Ogartaigh, Ciaran O, Baskerville, Rachel. (2009). Report On Research Conducted In The United Kingdom And New Zealand In 2008 Investigating The Audit Expectation-Performance Gap And User’s Understanding of And Desired Improvements to the Auditor’s Report.
Prasad P. and Chand P. (2017). The Changing Face of the Auditor's Report: Implications for Suppliers and Users of Financial Statements, Australian Accounting Review, 27, 4, (348-367),
Srijunpetch S.(2016). Thammasat Business School. Retrieved November 5, 2018, from https://www.tbs.tu.ac.th/wp-content/uploads/2017/05/Session-3_2-slp-เตรียมพบรายงานแบบใหม่อีกแล้ว.pdf
Srijunpetch, S. (2017). Key Audit Matters in an Auditor’s Report and Response of the Stock Exchange of Thailand, Thammasat Business Journal, 13(38), 22-37.
Stock Exchange of Thailand. (2014). SET 100 Index, Retrieved October 3, 2018, from https://www.set.or.th/th/products/index/setindex_p3.html
Stock Exchange of Thailand. (2015). Factors affecting stock prices 14, 2019, from https://www.set.or.th/education/th/begin/stock_content02
Stock Exchange of Thailand. (2019). Market overview, Retrieved February 14, 2019, from https://www.settrade.com/C13_MarketSummary.jsp?detail=INDUSTRY
Tangruenrat, C. (2015). The Value of New Auditor’s Report, Thammasat Business Journal, 11(31),26-44
Tangruenrat, C. (2017). New Auditor’s Report: The 1styear Experiences, Thammasat Business Journal, 13(38), 5-21.
Tangruenrat, C. (2017). Understanding Audit Changes: An Important Issue in Audit.Accounting and Management Information Systems, 13(1), 128-152.
Theodore J. Mock, Jean Bédard, Paul J. Coram, Shawn M. Davis, Reza Espahbodi, and Rick C. Warne (2013) The Audit Reporting ตัวแบบ: Current Research Synthesis and Implications. AUDITING: A Journal of Practice & Theory, 32(1), 323-351.
Vanstraelen, A., Schelleman, C., Meuwissen, R., Hofmann, I. (2012). The Audit Reporting Debate: Seemingly Intractable Problems and Feasible Solutions.
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Published
30-10-2019
How to Cite
Limaporn, S., Suttipun, M. ., Binarvang, ,Kanokwan, Yebmae, C. ., chamradlaph, P., & Eukuntorn, S. (2019). The Relationship Between Key Audit Matters (KAM) disclosure and stock price of SET 100 companies from the Stock Exchange of Thailand. Journal of Accountancy and Management, 11(3), 40–53. Retrieved from https://so02.tci-thaijo.org/index.php/mbs/article/view/235527
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