Review of Accounting Conservatism, Real Earnings Management and Thai Stock Exchange

Abstract

This study reviewed accounting conservatism, real earning management and The stock exchange of Thailand. Literature review showed that accounting conservatism can be classified into two types: conditional and unconditional conservatism. Conditional conservatism focused on the timing of financial reporting depending on bad news and good news of a company, while unconditional conservatism examined the different of accounting profits and operating cash flow. Real earning management is a measure of the level of abnormal cash flow of a firm. The measure of real earning management consisted of the level of abnormal cash flow from three activities: Production, discretionary expenses and operating cash flow. This study will conduct the research about the unconditional accounting conservatism and real earning management of Thai listed companies for 2016 – 2018. Certainly, Pearson correlation will be employed for data analysis in the future.