Factors affecting the selection of property, plant and equipment revaluation influencing discretionary accruals of listed companies in real estate and construction sector in stock exchange of thailand.

Abstract

The objective of this research was to explore factors affecting the selection of property, plant and equipment revaluation influencing discretionary accruals of listed companies in real estate and construction sector in Stock Exchange of Thailand during the period of 2011 - 2013. Data were collected from 294 samples and analyzed by logistic regression analysis and t-test in order to test the hypothesis. The results revealed that debt and property investment ratios affected the selection of revaluation accounting policies. Furthermore, the research revealed that sample firms selecting property, plant and equipment revaluation had significantly higher discretionary accruals than those firms who applied cost method at 0.05 significant level of statistics.