CHAPTER 5 CONCLUSIONS AND IMPLICATION
The paper investigates the value relevance of earnings and earnings persistence of listed companies on the Stock Exchange of Thailand (SET) and the Shanghai Stock Exchange (SSE). The study also compares the difference in value relevance of earnings and earnings persistence of the listed companies of both stock markets. The years of study are 2006-2008 for value relevance test (years 2005-2008 for earnings persistence test). The results indicate that earnings are related to stock returns significantly in both stock markets. The findings are consistent to the prior research (Kothari, 2001; Barth et al., 2008). Thus, earnings are value relevant information which investors use them in valuing their securities. In addition, the findings of the paper also reveal that there are the significant difference in correlation between return-earnings of listed companies on the SET and the SSE. The correlations of return-earnings of listed companies on the SET are more than that of listed companies on the SSE. Hence, the value relevance of earnings of the Thai listed firms is more than that of Chinese listed firms significantly for pooled-periods of the study (years 2006-2008). In addition, the current earnings and future earnings are significantly related for listed companies on both stock exchanges. Earnings have the persistence and predictability properties for listed companies on the SET and the SSE. The correlations between the future earnings and current earnings of listed companies on the SET are more than that of listed companies on the SSE. That is, earnings persistence of listed companies on the SET is more than that of listed companies on the SSE for pooled-periods of the study (years 2005-2008). In the cross-sectional analysis, the results indicate that accounting information quality of Thailand is more than that of China significantly. The plausible reason is the difference of the extent of IAS/IFRS adoption. In Thailand, the Federation of Accounting Profession (FAP) has begun the adoption of IASs/IFRSs since the year 1999 while Chinese Accounting Standards (CASs) were largely replaced by IASs/IFRSs since the year 2006. The new Accounting Standards for Business Enterprises (ASBEs) in China becomes effective on January 1, 2007. Because the ASBEs are new standards and firms are in the transition period with the changes in many accounting standards. Therefore, the value relevance and earnings persistence of listed companies on the SSE are less than that of
บทที่ 5 บทสรุปและปริยายThe paper investigates the value relevance of earnings and earnings persistence of listed companies on the Stock Exchange of Thailand (SET) and the Shanghai Stock Exchange (SSE). The study also compares the difference in value relevance of earnings and earnings persistence of the listed companies of both stock markets. The years of study are 2006-2008 for value relevance test (years 2005-2008 for earnings persistence test). The results indicate that earnings are related to stock returns significantly in both stock markets. The findings are consistent to the prior research (Kothari, 2001; Barth et al., 2008). Thus, earnings are value relevant information which investors use them in valuing their securities. In addition, the findings of the paper also reveal that there are the significant difference in correlation between return-earnings of listed companies on the SET and the SSE. The correlations of return-earnings of listed companies on the SET are more than that of listed companies on the SSE. Hence, the value relevance of earnings of the Thai listed firms is more than that of Chinese listed firms significantly for pooled-periods of the study (years 2006-2008). In addition, the current earnings and future earnings are significantly related for listed companies on both stock exchanges. Earnings have the persistence and predictability properties for listed companies on the SET and the SSE. The correlations between the future earnings and current earnings of listed companies on the SET are more than that of listed companies on the SSE. That is, earnings persistence of listed companies on the SET is more than that of listed companies on the SSE for pooled-periods of the study (years 2005-2008). In the cross-sectional analysis, the results indicate that accounting information quality of Thailand is more than that of China significantly. The plausible reason is the difference of the extent of IAS/IFRS adoption. In Thailand, the Federation of Accounting Profession (FAP) has begun the adoption of IASs/IFRSs since the year 1999 while Chinese Accounting Standards (CASs) were largely replaced by IASs/IFRSs since the year 2006. The new Accounting Standards for Business Enterprises (ASBEs) in China becomes effective on January 1, 2007. Because the ASBEs are new standards and firms are in the transition period with the changes in many accounting standards. Therefore, the value relevance and earnings persistence of listed companies on the SSE are less than that of
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