BUSINESS PROBLEM MANAGEMENT AND QUALITY OF FINANCIAL REPORTS BUSINESSES IN UPPER AND MIDDLE NORTH EAST REGION

Abstract

This research was aimed to study the management of business operation problems and
financial reporting quality of small and medium enterprises in upper and central Northeastern
regions. The data was collected from 400 informants using questionnaires. Data analysis was
conducted by computer program using statistics including percentage, mean and standard
deviation, correlation analysis and multiple regression analysis.
The study result showed that most informants were females aged between 41-50 years,
single and obtained Bachelor degree single. Based on types of business operation, most informants
were retailors and wholesalers registered as limited partnership with registered capital of at least
than 2,000,000 Baht doing business from 1 to 3 years.
Hypothesis testing result revealed that the problems of small and medium enterprises
management were correlated to financial reporting quality of business. The management of small
and medium enterprises problems was positively related to financial reporting quality with
statistically significant level of 0.05. In addition, the regression coefficient which was 0.702 defines
that problems management of small and medium enterprises was positively related or consistent
to financial reporting quality.
Small and medium enterprises emphasized the importance of capital management
problem as the first issue and development of organization as the last. When considering the
correlation study result, it was found that capital problem management was correlated to financial
reporting quality. Consequently, to increase the quality of financial reporting, it should be
emphasized on capital problem management including management, support from government
sectors and information perception.