Muttanachai Suttipun and Sureerat Saefu
Prince of Songkla University, Thailand
Year: January 2017
Volume: 26 No. 2
The aims of this research are to investigate the extent and level of sufficiency economy philosophy (SEP) reporting in the annual reports of companies listed on the Stock Exchange of Thailand (SET) and to determine the relationships between corporate characteristics, SEP reporting, and financial performance. Content analysis is used to quantify SEP reporting in the 2012 annual reports of 222 Thai SET-listed companies, while descriptive analysis is employed to describe the type and level of SEP reporting. The relationships between corporate characteristics, SEP reporting, and financial performance are investigated using a correlation matrix and path analysis. The findings show that all the sampled firms included SEP reports in the annual reports. The SEP reporting in reasonableness principle is the most common reporting followed by morality condition, self-immunity principle, knowledge condition, and moderation principle. The SEP reporting is 945.92 average words in Thai corporate annual reports. Company size and type of auditor play a significant role in SEP reporting. In addition, SEP reporting and the degree of leverage are significantly related to firms’ financial performance.