| dc.description.abstract | This study examines the accounting quality in associations with
controlling shareholders. The samples consisted of 370 listed firms traded on the
Stock Exchange of Thailand (SET) between
2008 and 2012.
Controlling shareholders were determined by two cutting points of
voting rights: (1) not less than 10%, and (2) not less than 25%. On the other
hand, accounting quality was measured by four discretionary or abnormal
accruals models; including (1) the Dechow and Dichev model (2002), (2) the
Modified Jones model (1995), (3) the Yoon, Miller, and Jiraporn model (2006),
and (4) the adjusted accruals model. The discretionary accruals value was
determined by the estimated results of panel data models with random effects
using (1) all samples, (2) sample categorized by industry,
and (3) sample categorized by year of operation. This study also examined the effects of the
types of controlling shareholders and the levels of ownership on accounting
quality.
The results showed that the Alignment Effect and the Stewardship
theory were likely to be more severe in the firms with a controlling shareholder
which had not less than 25% of voting rights, since these two factors were
strongly associated with high accounting quality. Furthermore, the accounting
quality of controlling shareholders firms was also better than the counterparts.
However, the voting rights of the controlling shareholders must be high enough
to make decision or block voting. The results coincided with conditions of the
Alignment Effect and the Stewardship theory. On the contrary, the accounting
quality of the firms which controlling shareholders had voting rights more than
10% but less than 25% was low. The result also coincided with the indications
of the Entrenchment Effect. As a whole, this study found enough evidences to
confirm for the association between the accounting quality and controlling
shareholders, by which the level voting rights had higher effect on the
accounting quality than the types of controlling shareholders. | en_US |
