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The impact of board of directors and ownership characteristics on earnings management of publicly listed firms in Vietnam

Nguyen, Tuan Huy (2016) The impact of board of directors and ownership characteristics on earnings management of publicly listed firms in Vietnam.

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Abstract:This study investigates the extent whether board of directors and ownership characteristics are related to earnings management in Vietnamese context. Based on sample of 570 non financial listed firms from 2010 to 2014, I find a non-linear association between state ownership and earnings management. Furthermore, firms with higher proportion of foreign ownership are more likely to constrain the manipulative practices exercised by managers. Additional test on interaction between corporate governance and leverage indicate CEO holding the position of chairman is more likely to distort financial reports in a highly geared firm. Higher managerial ownership marginally reduces earnings manipulation in firms subject to considerate debt level. On the other hand, board with higher percentage of non-executive directors and concentrated ownership might not have any effect on earnings management. The association between board size and earnings management is inconclusive due to the fact that the constraining effect of board size on earnings management is only evident in the model with discretionary accruals rather than accruals quality. Finally, I do not find that the revision of corporate governance code in 2012 improves board monitoring function.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Awards:University Twente Scholarship
Link to this item:http://purl.utwente.nl/essays/71082
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