DO BOARD CHARACTERISTICS INFLUENCE EARNINGS MANAGEMENT THROUGH TAX PLANNING? INSIGHTS FROM THE THAI STOCK EXCHANGE
DOI:
https://doi.org/10.14456/aamr.2025.17Keywords:
Corporate Board Characteristics, Tax Planning, Earnings Management, Companies Listed on the Stock Exchange of ThailandAbstract
In 2023, a significant financial scandal occurred involving Stark Corporation Public Company Limited (STARK), where the company's Board of Directors manipulated accounting. This included creating false sales entries by generating fake documents or selling to affiliated companies or subsidiaries without product delivery. As a result, the company's receivables increased each year. This event caused a financial loss exceeding 50 billion baht in the economic and capital markets. This research aims to study the influence of the characteristics of the Board of Directors and tax planning on profit management in listed companies on the Stock Exchange of Thailand. The study analyzed a sample of 268 companies between 2020 and 2022. The findings indicate that factors influencing tax planning include independent directors (ID), female board members (WO), and board's educational (AC). The study also found that factors influencing earnings manipulation include female board members (WO), board size (BS), board's educational (AC), and tax planning (ETR). Furthermore, the influence on earnings manipulation through tax planning included the independent directors (ID), female board members (WO), and board's educational (AC). The research findings are valuable for shareholders, investors, and users of financial statements when considering the appointment of board members and making investment decisions. These results can be used as economic decision-making information.
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