Research article

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Ownership Structure, Default Probability, and Corporate Value Pornpitchaya Kuwalairat, Suparatana Tanthanongsakkun and Sunti Tirapat Pages 1 - 31    Download PDF  Article preview Cite Abstract This study examines the association between ownership structure, default probability and corporate value in Thailand. It is found that the ownership structure statistically affects the default probability. In addition, the study finds that managerial ownership and block holdings positively associate with corporate value. Moreover, there is positive association between foreign holdings and the Q ratio. This suggests that foreign block holders are better at monitoring firms than local shareholders. We also find a strong negative association between default probability and corporate value. Finally, to control for the endogeneity effect, we examine the relations of default probability, ownership structure, and corporate value using the simultaneous regression. Unlike the findings obtained from using ordinary least squares, the results show that corporate value affects managerial ownership, but not vice versa. Moreover, it is found that managerial ownership negatively affects default probability which in turn also negatively affects firm performance. Overall our findings provide an alternative explanation of the relationship between ownership structure and corporate value. They suggest that the association between ownership structure and corporate value can be analyzed by the framework of the structural model. Ownership structure affects default probability which in turn affects firm performance.
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Important Issues Related to Consolidated Financial Statement Preparation and Disclosure of Interests in Other Entities Based on IFRS 10 and 12 Natchanont Komutputipong and Visarut Sribunnak Pages 32 - 41    Download PDF  Article preview Cite Abstract The International Accounting Standards Board issued the International Financial Reporting Standard No. 10: Consolidated Financial Statements and the International Financial Reporting Standard No. 12: Disclosure of Interest in Other Entities to refine the definition of effective control and to require that firms disclose information related to unconsolidated structured entities. Adopting both standards leads to issues in view of financial statement preparation and analysis. This article aims to shed some lights on issues related to both IFRSs from financial statement preparation and analysis perspectives. Consolidated financial statement preparers are required to have skills in the process of identifying firms for consolidation purpose and to bear higher costs of gathering information. In terms of financial statement analysis, one should perform comparative analyses with care.
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Accounting for Income Tax Nattavut Suwanyangyuan Pages 42 - 58    Download PDF  Article preview Cite Abstract Thai Accounting Standard (TAS) No. 12 will be applicable to annual reporting of Publicly accountable entities for periods beginning on or after 1 January 2013. The objective of TAS 12 is to prescribe the accounting treatment for income taxes. Because Thai accounting standard and tax regulations differ in a number of ways, so do pretax financial income and taxable income. Consequently, corporations have to recognize not only current tax for the period but also all taxable temporary differences as either deferred tax assets or deferred tax liabilities. As a result, the adoption of deferred tax will provide a clear picture of present and potential tax obligations and tax benefits for financial statement users in order to make proper financial statement analysis.
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Thailand International Investment Position and The Role of Small and Medium Enterprises (SMEs) International Joint Ventures (IJV) In Thailand Economic Development Wanida Wadeecharoen, Athiwat Kanjanavanikul, Rungsun Lertnaisat and Sombat Teekasap Pages 59 - 90    Download PDF  Article preview Cite Abstract Thai SMEs have been contributing up to 42 percent of Thailand national GDP. This phenomenon has generated up to 3 quarter of total national employment. Thai SME IJVs tend to be extensively associated with Thailand’s national economic performance. This is confirmed by past research studies, which examine the result of Thailand economic performance through a research document during 2009 and 2010; Thailand foreign investment inflow grew in terms of SME IJV projects. The largest SME IJV projects were in manufacturing of motors vehicles which involves 1,315 million Baht, an increase of 72 percent from 2009. However, during last quarter of 2011 Thailand economy was affected by devastating floods and caused damage to motor vehicles and its spare parts producters, whereby most of the SME IJVs are engaged. Therefore, this study intends to examine the impact of floods crisis on International investment position through a research document, were its analysis result confirm the International investment position of Thailand and its original glory and strength based on the SME IJVs.
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Effects of Label Alignments, Field Lengths and Number of Columns on Fixation Counts in Online Forms. Srirak Soponsakulsak and Chatpong Tangmanee Pages 91 - 111    Download PDF  Article preview Cite Abstract An online form is an important data collection tool. One measurement of the form's efficiency is the number of fixations. It is the total fixation points that are visible on the screen within the area of interest. The number of fixations often reflect the difficulty of use. This study examined the effects of (1) label alignments (2) field lengths and (3) number of columns on the number of fixations of online form. The results of eye-tracking analysis indicated that the effect of field lengths is statistically significant on the number of fixations at the 0.05 level, but the effects of the others were not significant.