RELATIONSHIP OF OWNERSHIP STRUCTURE, EARNINGS MANAGEMENT ON MARKET PERFORMANCE OF THE LISTED COMPANIES ON THE STOCK EXCHANGE OF THAILAND

The purpose of this study was to investigate the impact of the relationship between ownership structure and earnings management on the market performance (Tobin’s Q) of listed companies on the Stock Exchange of Thailand from 2021 to 2023. The study analyzed 1,365 firm-year observations, with data collected from SETSMART. Earnings management was measured using the model of Raman and Shahrur (2008), and panel data regression analysis was employed to test the hypotheses. The results suggest that shareholder activism is a factor in the efficacy of a company's value creation. Additionally, the company's market value decreases as management manipulates earnings more frequently. In the long term, earnings management is a strategy that is detrimental to companies, as it diminishes investor confidence and decreases the company's market value. The results thus support this notion. Investors and stakeholders should be cautious of companies that exhibit this behavior when making investment decisions.