The Influence of Sustainability Disclosure on the Accounting Quality: Evidence from Thailand

Authors

  • Khomsan Laosillapacharoen
  • Sudawan Somjai
  • Achara Luengsawas

Abstract

The study intends to evaluate the impact of disclosure related to the sustainable development on the accounting quality on the firms listed in the Thai Capital Market (TCM). The study used content analysis to examine annual reports of 175 firms quoted on the TCM for the year 2018. The accounting quality is measured through discretionary accruals and accounting conservatism. The findings showed that the influence of sustainable development’s disclosure on the information asymmetry and discretionary accruals is significantly negative. Whereas, the impact of sustainable development’s disclosure on the accounting conservatism is positively significant. Overall, it can be concluded that the increase in sustainable development’s disclosure improves the accounting quality in the context of the TCM. This study enhances the literature by offering unique evidence from developing countries’ context. Moreover, policymakers should take a step to improve sustainable development’s disclosure to improve accounting quality to cater to the stakeholder's internet generally.

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Published

2020-04-04

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Articles