EFFECTS OF BOARD STRUCTURE ON INFORMATION ASYMMETRY: THE MODERATING ROLE OF EARNINGS MANAGEMENT

Abstract

This study examines the influence of corporate governance factors on information asymmetry, with a specific focus on board structure and its impact on the utilization of earnings management for sustaining corporate performance. The primary objective is to explore the interdependencies among board structure, earnings management, and information asymmetry within publicly listed firms in Thailand. A sample comprising 1,430 firm-years of Thailand publicly listed companies over a 10-year period (2013-2022) was employed. Utilizing a fixed-effects panel data model, financial and market data were collected and analysed. The investigation revealed that board structure variables, including board independence and board meeting frequency, along with return on asset, significantly affected information asymmetry. However, CEO duality did not exhibit a significant impact. Moreover, earnings management demonstrated a positive association with information asymmetry. Notably, earnings management acted as a moderator in the relationship between board meeting frequency and information asymmetry.