The Mediating Effect of Firm Risk on Corporate Governance, Firm Performance, and Earnings Management


  • Jomsurang Ruangprapun Chulalongkorn University
  • Adisak Chotitumtara Naresuan University


Corporate governance, Firm risk, Firm performance, Earnings management, Emerging markets


This study investigates whether corporate governance (CG) is associated with firms’ financial outcomes and whether this relationship is mediated by firm risk. Analysis of non-financial listed companies in the Stock Exchange of Thailand between 2015 and 2019 shows that CG quality is positively associated with firm performance. However, although CG effectively constrains accrual earnings management, firms with good CG quality engage in high real earnings management. In addition, mediation analysis reveals that firm risk partially mediates the association between CG and firms’ financial outcomes. Specifically, firms with enhanced CG quality experience risk reduction, leading to better firm performance and less earnings management. Findings present practical implications for regulators and capital market stakeholders.


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How to Cite

Ruangprapun, J., & Chotitumtara, A. (2022). The Mediating Effect of Firm Risk on Corporate Governance, Firm Performance, and Earnings Management. Creative Business and Sustainability Journal, 44(1), 100–122. Retrieved from



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