The role of external monitor is the important
issue in Thailand and other countries. Because
investors and regulation agencies want to ensure
that managements will run the firms to maximize
shareholdersû wealth with reasonable cost. Auditors
are viewed as independent parties who audit firmûs
financial data and express an opinion whether the
financial statement is fairly present firm performance.
Institutional investors are also viewed as parties who
use their efforts in monitoring managements. This
study is to find out the role of external monitors in
firms in Thailand and scope down to firms with
excess cash flow and low growth opportunities.