Enhancing Financial Transparency: The Impact of TFRS Adoption and Best Practices on SMEs in Thailand’s EEC
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บทคัดย่อ
This study develops a structural equation model to explore the causal relationships between the adoption of Thai Financial Reporting Standards (TFRS), accounting best practices, and financial reporting quality among small and medium-sized enterprises (SMEs) in Thailand’s Eastern Economic Corridor (EEC), a strategic development zone aimed at promoting investment and economic growth. Despite increasing efforts to improve financial transparency among Thai SMEs, there remains limited empirical evidence on how accounting practices influence the adoption of TFRS and the resulting quality of financial reports, particularly within the EEC context. This study addresses this research gap.
A survey of 300 SMEs was conducted, and Structural Equation Modeling (SEM) was employed to analyze the direct effects among key constructs. The results show that accounting best practices significantly and positively influence the adoption of TFRS. Furthermore, both accounting best practices and TFRS adoption directly and positively impact financial reporting quality. Accounting best practices also indirectly enhance financial reporting quality through the mediation of TFRS adoption.
The finding contributes to the literature by highlighting the mechanism through which internal accounting practices drive compliance and reporting quality. Policymakers and stakeholders are encouraged to invest in capacity-building programs, digital tools, and institutional support systems to enhance SMEs' transparency and competitiveness, thereby fostering sustainable development in the EEC.
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