The Effect of Corporate Digital Transformation on Real Earnings Management : An Empirical Evidence form Listed Companies in The Stock Exchange of Thailand

Abstract

With the expansion of the digital economy and the development of digital technology, organizations have applied digital technology in production, customer behavior analysis, and data analysis to obtain real-time information. The process of connecting digital technology with the organization's operational processes is called corporate digital transformation, which leads to quality information. However, the acquisition of information depends on the behavior of managers in setting operational policies. Therefore, this study is a study of whether CDT can obtain quality information by reducing the profit management of executives. The objectives of the study are as follows: First, to examine whether the corporate digital transformation has a negative effect on the real earnings management. Second, to examine whether the corporate digital transformation has a negative effect on information asymmetry. Third, to examine whether the information asymmetry has a positive effect on real earnings management. Fourth, to examine whether the information asymmetry negatively mediated the associated corporate digital transformation between real earnings management. And fifth, to examine whether the board-level information technology governance negatively moderates the associated corporate digital transformation between real earnings management. The sample group used in this study was 1,158 companies listed on the stock exchange of Thailand, excluding companies that were listed in the financial industry, which consists of finance and securities, banking, and insurance. Including other industrial groups that carry on fund and trust business. This study uses secondary data to obtain the data based on the 56-1 One Report, annual report, notes to financial statements, the SET Market Analysis and Reporting Tool (SETSMART), and the websites of various companies. Then, the data were analyzed using descriptive statistics and Fixed effect model.

The results of the study found that first, the corporate digital transformation has a positive effect on the real earnings management but not significance. Second, the corporate digital transformation has a negative effect on information asymmetry. Third, the information asymmetry has a positive effect on real earnings management but not significance. Fourth, the information asymmetry negatively mediated the associated corporate digital transformation between real earnings management but not significance. And fifth, the board-level information technology governance negatively moderates the associated corporate digital transformation between real earnings management.

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