Volume 2 • Issue 1 | March, 2018
Corporate Governance and Earnings Management of Vietnamese Listed Firms
Nguyen Thu Hang, Nguyen Manh Hiep, Tran Thi Tuyet Tram
Abstract:
This study focuses on the impact of corporate governance on accruals- based earnings management of Vietnamese listed firms. Two aspects of corporate governance: characteristics of board and ownership structure are discussed in this study. Earnings management behaviors are measured by the level of discretionary accruals. Using the multiple regression model and panel data of 652 non-financial firms listed on the Hanoi and Hochiminh Stock Exchanges, we find that larger corporate boards are associated with lower levels of earnings management. Additionally, the ownership by managers or state can restrain earnings manipulation behaviors.