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Dang and Tran_Manuscript 2020.docx (103.01 kB)
The impact of ownership structure, financial distress on earnings management: The case of Vietnam
The paper examines the effect of ownership structure
on profit management in Vietnam. In this study, we explore how three components
of ownership structure - the degree of ownership concentration of managers, foreign
ownership ratio and state ownership ratio - affect earnings management. In addition, we
also consider whether ownership structure affects profit management during
financial constraints. We used
REM, FEM, GLS, and GMM regression methods. The study results have shown that
ownership structure with foreign ownership has a positive effect on earnings
management, whereas one with a proportion of state ownership has a
contradicting effect. While the degree of ownership concentration does not
affect the profit management, in the context of financial restrictions, the
ownership ratio has an impact on the management of earnings. Controllable
variables in the model, such as firm size, financial leverage, growth rate,
profitability and audit quality, all have an impact on earnings management. The
results could, potentially, be the basis to help businesses in restricting earnings management behaviour.
Funding
This research is funded by Vietnam National Foundation for Science and Technology Development (NAFOSTED) under grant number 502.02-2019.302.
History
Declaration of conflicts of interest
NoneCorresponding author email
manhdung@ktpt.edu.vnLead author country
- Viet Nam
Human Participants
- No
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