The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam
This paper examines the impact of audit quality and state ownership on accrual-based earnings management in Vietnamese listed firms. We find that firms which are audited by one of Big Four auditing companies (Deloitte, PricewaterhouseCoopers, Ernst & Young and KPMG) are less likely to engage in...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
HDV INSER., JSC
2018-08-01
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| Series: | Journal of International Economics and Management |
| Subjects: | |
| Online Access: | https://jiem.ftu.edu.vn/index.php/jiem/article/view/187 |
| _version_ | 1819277643341627392 |
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| author | Thu Hang Nguyen Nguyen Minh Tran Tran Thi Anh Thuy Pham Hoai Thuong Phan |
| author_facet | Thu Hang Nguyen Nguyen Minh Tran Tran Thi Anh Thuy Pham Hoai Thuong Phan |
| author_sort | Thu Hang Nguyen |
| collection | DOAJ |
| description | This paper examines the impact of audit quality and state ownership on accrual-based earnings management in Vietnamese listed firms. We find that firms which are audited by one of Big Four auditing companies (Deloitte, PricewaterhouseCoopers, Ernst & Young and KPMG) are less likely to engage in earnings management than those audited by Non-Big Four companies. We also find that the higher the proportion of state ownership accounts in outstanding shares, the less earnings management is. Based on the results, we conjecture that a Big Four auditor tends to restrain the use of aggressive accounting, and to make the audited financial statements in compliance with the standards. Also, enterprises with higher proportion of state ownership may have protection from the government as well as less pressure to meet the market expectations than their counterparts, resulting in less earnings management. |
| first_indexed | 2024-12-23T23:59:22Z |
| format | Article |
| id | doaj.art-73fb6c6b07ce45fb9d975014f3577f52 |
| institution | Directory Open Access Journal |
| issn | 2615-9856 |
| language | English |
| last_indexed | 2024-12-23T23:59:22Z |
| publishDate | 2018-08-01 |
| publisher | HDV INSER., JSC |
| record_format | Article |
| series | Journal of International Economics and Management |
| spelling | doaj.art-73fb6c6b07ce45fb9d975014f3577f522022-12-21T17:25:11ZengHDV INSER., JSCJournal of International Economics and Management2615-98562018-08-01108319187The impact of audit quality and state ownership on accrual-based earnings management: evidence from VietnamThu Hang NguyenNguyen Minh Tran TranThi Anh Thuy PhamHoai Thuong PhanThis paper examines the impact of audit quality and state ownership on accrual-based earnings management in Vietnamese listed firms. We find that firms which are audited by one of Big Four auditing companies (Deloitte, PricewaterhouseCoopers, Ernst & Young and KPMG) are less likely to engage in earnings management than those audited by Non-Big Four companies. We also find that the higher the proportion of state ownership accounts in outstanding shares, the less earnings management is. Based on the results, we conjecture that a Big Four auditor tends to restrain the use of aggressive accounting, and to make the audited financial statements in compliance with the standards. Also, enterprises with higher proportion of state ownership may have protection from the government as well as less pressure to meet the market expectations than their counterparts, resulting in less earnings management.https://jiem.ftu.edu.vn/index.php/jiem/article/view/187audit qualitydiscretionary accrualsearnings managementstate ownership |
| spellingShingle | Thu Hang Nguyen Nguyen Minh Tran Tran Thi Anh Thuy Pham Hoai Thuong Phan The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam Journal of International Economics and Management audit quality discretionary accruals earnings management state ownership |
| title | The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam |
| title_full | The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam |
| title_fullStr | The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam |
| title_full_unstemmed | The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam |
| title_short | The impact of audit quality and state ownership on accrual-based earnings management: evidence from Vietnam |
| title_sort | impact of audit quality and state ownership on accrual based earnings management evidence from vietnam |
| topic | audit quality discretionary accruals earnings management state ownership |
| url | https://jiem.ftu.edu.vn/index.php/jiem/article/view/187 |
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