Title: A Study of the Impact of Financial Reporting Quality on Investor Confidence in Tesla, Inc
Author: Zheng Yang
Advisor: Dr. Ma Yu
Degree: Master of Business Administration
Major: Finance and Accounting
Faculty: บัณฑิตวิทยาลัย (Graduate School)
Academic year: 2567 (2024)
Published: นำเสนอในที่ประชุมวิชาการ (Conference) TThe 1st Thailand-Sino International Conference and The 17th National and International Academic Conference “New Quality Productive Forces and Sustainable Innovation” 14-16 November 2024 (pp.531-543) Click PDF
Abstract
This study investigated the impact of financial reporting quality on investor confidence in Tesla, Inc., a leading company in the electric vehicle industry. As Tesla operates in a highly innovative and volatile market, its financial transparency and reporting practices play a critical role in shaping investor trust. The study focused on three key factors—which are earnings transparency, audit quality, financial disclosure timeliness, and their relationships with investor confidence, using the Signaling Theory as the theoretical framework. The objectives of this study were: 1. To examine the impact of earnings transparency on investor confidence in Tesla, Inc, 2. To examine the impact of audit quality on investor confidence in Tesla, Inc, 3. To examine the impact of financial disclosure timeliness on investor confidence in Tesla, Inc.
A quantitative research design was employed, with a structured questionnaire distributed to a sample of 400 Tesla investors. A total of 320 valid responses were analyzed. The data were collected via an online survey and analyzed using descriptive statistics, Pearson correlation, and regression analysis to test the hypotheses.
The findings reveal that all three variables: earnings transparency, audit quality, and financial disclosure timeliness, all had a positive impact on investor confidence. Audit quality emerged as the most significant predictor of investor confidence, followed closely by earnings transparency. While financial disclosure timeliness also had a positive effect, its impact was slightly weaker than the other two variables. These results suggest that investors prioritize the accuracy, reliability, and clarity of financial information over the speed of its release.
This study confirms that high-quality financial reporting practices are essential for maintaining and enhancing investor confidence in Tesla. The study recommends that Tesla should continue to focus on improving its earnings transparency, maintaining rigorous audit practices, and ensuring timely disclosures to strengthen its relationship with investors and sustain market trust. Further research may explore other factors influencing investor confidence, such as corporate governance and industry-specific challenges.
Keywords: earnings transparency, audit quality, financial disclosure timeliness, investor confidence, financial reporting quality
6617195427, Zheng Yang, Advisor: Dr. Ma Yu, สารนิพนธ์ (Independent Study), A Study of the Impact of Financial Reporting Quality on Investor Confidence in Tesla, Inc, นำเสนอในที่ประชุมวิชาการ (Conference), The 1st Thailand-Sino International Conference and The 17th National and International Academic Conference “New Quality Productive Forces and Sustainable Innovation” , ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Siam University, Bangkok, Thailand – มหาวิทยาลัยสยาม กรุงเทพมหานคร ประเทศไทย
