Research article

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Linkage of Budgetary Slack to Discretionary Accruals: The Empirical Evidence of Listed Companies in Thailand Pornpan Damrongsukniwat, Danuja Kunpanitchakit and Supol Durongwatana Pages 1 - 25    Download PDF  Article preview Cite Abstract This study investigates the linkage of budgetary slack to discretionary accruals as a result of earnings management. The study uses data from survey questionnaires and data from the annual financial statements for the year ended 2009 of listed non-financial and non-rehabilitation companies in Thailand. The respondents are those who are at the corporate level. The population covers 387 firms and there are 38 returned and usable questionnaires which is 10% response rate. The results reveal that firms choose to manipulate earnings through discretionary accruals and create slack into budgets. The means of discretionary accruals are significantly different among groups. However, there is no statistical evidence that the means of budgetary slack of each subsample group are different. There is a linkage of budgetary slack to discretionary accruals. Firms that incorporated slack into budgets and already achieved their annual earnings targets are more likely to manipulate earnings downward in order to reserve the excess earnings and/or not to exceed the targets by too much which will affect the budget setting in the next period.
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Survey Research: Tax Questions Related to 65 Ter Wannee Taechoyotin and Wittawat Prattanasat Pages 26 - 39    Download PDF  Article preview Cite Abstract This paper studies tax-related questions submitted to the Revenue Department from 1997-2012. Among 3,824 questions, Most questions (32.79%) are related to corporate income taxes. We focus only on corporate tax expenses that are not qualified as expenses by tax codes section 65 Ter. Questions can be classified into six groups as follows: 1) tax codes are clear. 2) tax codes are clear but real situation involves more details tham stated by tax codes. 3) classify into incorrect tax codes. 4) need extra caution in interpretation. 5) complicated situations. 6) tax codes do not facilitate business activities that have changed dramatically.
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The Relationship Between Perception of Thai Financial Reporting Standards for Non-publicly Accountable Entities and Quality of Thai Accountants: A Case Study of Southern Part of Thailand Muttanachai Suttipun, Sunisa Sookawat, Anunya Macharern, Amornrat Teenpittayamas, Antira Kongyuang, Kanoknun Junlatap, Yanisa Wanichkulpitak, Tunyada Jindeawa, Nussara Khumhitakphong, Nureehun Toh-emae and Sudarat Chaichana Pages 40 - 57    Download PDF  Article preview Cite Abstract Objectives of this study are to study the perception level of Thai financial reporting standards used for non-publicly accountable entities, and quality of Thai accountants, and investigate the reason why non-publicly accountable entities choose the alternative financial standards for their businesses. The findings indicate that perception of accountants on Thai financial reporting standards for non-publicly accountable entities is in high level as same as the quality of Thai accountants. However, the study cannot find any relationship between the level of perception of Thai financial reporting standards used for non-publicly accountable entities, and quality level of Thai accountants. The reasons of using the alternative financial standards for non-publicly accountable entities are that the organizations are going to the Stock Exchange of Thailand, the organizations have their parent organizations being in the Stock Exchange of Thailand, and the organizations are ready to take financial reporting standards of publicly accountable entities for their business.
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Business Orientations for Sustainability of Small and Medium Enterprises Thankawin Ratthawatankul, Siriwut Buranapin, Orapin Santidhirakul and Nittaya Jarinagprasert Pages 58 - 83    Download PDF  Article preview Cite Abstract This academic article aims to conceptualize business orientations explaining sustainability of small and medium enterprises. Although entrepreneurial orientation is a construct for the success of the enterprises significantly, it is insufficient for business sustainability, compounding of economic, social, and environmental pillars. This is because the orientation greatly explains only outcomes in economic one but less maintains outcomes in social and environmental ones. Built upon stakeholder theory, the paper introduces collaborative orientation, focusing on stakeholders and morality, as an additional approach to be integrated with the former one for business sustainability. Therefore, small and medium enterprises should adopt entrepreneurial and collaborative orientation for sustainable business success.
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Does the Quantitative Easing Actually Help Improve the Stock Market Development in Emerging Countries? Another Evidence on the Spillover Effects of QE Pornpitchaya Kuwalair Pages 84 - 107    Download PDF  Article preview Cite Abstract The Quantitative Easing (QE) has been used by central banks in developed countries to help revive the economic growth and pull the countries out of recession. Through the large scale asset purchases that can involve the riskier assets in addition to usual low risk government bonds, this process will increase the money supply and therefore help stimulate the aggregate demand and economic growth in the country that has implemented the QE. However, previous literatures have found that QE does not only affect the country that implemented the QE but also has spillover effects to emerging countries that have received massive amount of capital inflows as a result of QE. As a results of these massive amount of capital inflows after the QE, we expect that QE is likely to positively affect the stock market development in emerging countries. Out of total of eleven countries in emerging Asia and emerging Latin America, we find five countries have significant higher degree of stock market development in terms of size after the QE is implemented comparing to before QE period. We also find that six out of eleven countries have significant higher degree of stock market development in term of size in QE2 period comparing to QE1. One of the reasons that the stock market development in these emerging countries are more developed is due to their economic fundamentals have been improved after the QE is implemented. We find the stronger economic fundamentals in these countries are one of the reason that helps attract the capital inflows which further result in higher degree of stock market development. In summary, we find the stock market in some of emerging market economies become larger after the implementation of the QE by advanced economy. Therefore, our paper sheds a new light in terms of another possible spillover effects of QE in terms of stock market development in emerging countries that no one has ever mentioned before.