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The influence of corporate governance mechanism on the integrated financial reporting and investment risk of Thai listed companies

Author

Listed:
  • Sarapee Chanatup

    (Suratthani Rajabhat University, Thailand)

  • Somnuk Aujirapongpan

    (Walailak University, Thailand)

  • Supit Ritkaew

    (Walailak University, Thailand)

Abstract

This study was to examine relationships between corporate governance mechanism, integrated financial reporting, and investment risk on the stock exchange in Thailand. This study has investigated determinants and consequences of integrated financial reporting by analyzing Form 56-1 for year-end 2015 of the 240 Thai listed firms. To examine the relationship, an integrated financial reporting checklist was developed to identify the level of integrated reporting of listed firms on the Stock Exchange of Thailand. An index was based on seven dimensions of the International Integrated Reporting Framework. An integrated financial reporting is then analyzed using content analysis. An integrated financial reporting and corporate governance mechanism were collected from Form 56-1 for year-end 2015. Investment risk data was collected from SETSMART database. The analysis was conducted using structural equation modeling (SEM). The statistical results from factor analysis found that all seven dimensions are appropriate measurements of integrated financial reporting. The empirical result is that positive relationships were found for stakeholder-oriented corporate governance mechanism, shareholder-oriented corporate governance mechanism and integrated financial reporting; integrated financial reporting and investment risk. The model identified mediating relationship of integrated financial reporting between shareholder-oriented corporate governance mechanism and investment risk.

Suggested Citation

  • Sarapee Chanatup & Somnuk Aujirapongpan & Supit Ritkaew, 2020. "The influence of corporate governance mechanism on the integrated financial reporting and investment risk of Thai listed companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2818-2831, June.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:4:p:2818-2831
    DOI: 10.9770/jesi.2020.7.4(16)
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    References listed on IDEAS

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    1. Marco Allegrini & Giulio Greco, 2013. "Corporate boards, audit committees and voluntary disclosure: evidence from Italian Listed Companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 187-216, February.
    2. Williamson, Oliver E, 1981. "The Modern Corporation: Origins, Evolution, Attributes," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1537-1568, December.
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    4. Mohammad Jizi & Aly Salama & Robert Dixon & Rebecca Stratling, 2014. "Corporate Governance and Corporate Social Responsibility Disclosure: Evidence from the US Banking Sector," Journal of Business Ethics, Springer, vol. 125(4), pages 601-615, December.
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    Cited by:

    1. Sumaia Ayesh Qaderi & Belal Ali Abdulraheem Ghaleb & Abdulwahid Ahmed Hashed & Sitraselvi Chandren & Zaimah Abdullah, 2022. "Board Characteristics and Integrated Reporting Strategy: Does Sustainability Committee Matter?," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    2. Sunday Oseiweh Ogbeide & Henry Usunobun Ogiugo & Isaac Olufemi Adesuyi, 2021. "Corporate governance mechanisms and financial reporting quality of commercial banks in Nigeria," Post-Print hal-03583879, HAL.
    3. Sunday Oseiweh Ogbeide & Henry Usunobun Ogiugo & Isaac Olufemi Adesuyi, 2021. "Corporate governance mechanisms and financial reporting quality of commercial banks in Nigeria," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 3(1), pages 136-146, March.

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    More about this item

    Keywords

    corporate governance; integrated reporting; integrated financial reporting; investment risk;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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