Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies
By combining Empirical Distribution Approach (EDA) and Discretionary Accruals Approach (DAA) with data including 2,949 observations of 295 Vietnamese listed companies from 2006 to 2016, we provide evidence that the firms have conducted earnings management behavior to avoid losses but have not commit...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2020-01-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23322039.2020.1849980 |
| _version_ | 1818673201448747008 |
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| author | Ky Han Tran Nguyen Hung Duong |
| author_facet | Ky Han Tran Nguyen Hung Duong |
| author_sort | Ky Han Tran |
| collection | DOAJ |
| description | By combining Empirical Distribution Approach (EDA) and Discretionary Accruals Approach (DAA) with data including 2,949 observations of 295 Vietnamese listed companies from 2006 to 2016, we provide evidence that the firms have conducted earnings management behavior to avoid losses but have not committed earnings management behavior to avoid earnings decreases. The evidence indicates that the firms conducting earnings management behavior to avoid losses account for from 4.88% to 13.76% of the whole sample and account for from 49.6% to 73.6% of negative earnings observations. In addition, we find that the changes in working capital are a common tool for managers to conduct earnings management behavior to avoid losses. Furthermore, by removing discretionary accruals from earnings, we also confirm that managers have used discretionary accruals as a tool to manipulate reported earnings upward to avoid losses. |
| first_indexed | 2024-12-17T07:52:02Z |
| format | Article |
| id | doaj.art-c67a228c439749c2bf6ae44e6621bb4f |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-17T07:52:02Z |
| publishDate | 2020-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-c67a228c439749c2bf6ae44e6621bb4f2022-12-21T21:57:49ZengTaylor & Francis GroupCogent Economics & Finance2332-20392020-01-018110.1080/23322039.2020.18499801849980Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companiesKy Han Tran0Nguyen Hung Duong1Quang Trung UniversityThe University of DanangBy combining Empirical Distribution Approach (EDA) and Discretionary Accruals Approach (DAA) with data including 2,949 observations of 295 Vietnamese listed companies from 2006 to 2016, we provide evidence that the firms have conducted earnings management behavior to avoid losses but have not committed earnings management behavior to avoid earnings decreases. The evidence indicates that the firms conducting earnings management behavior to avoid losses account for from 4.88% to 13.76% of the whole sample and account for from 49.6% to 73.6% of negative earnings observations. In addition, we find that the changes in working capital are a common tool for managers to conduct earnings management behavior to avoid losses. Furthermore, by removing discretionary accruals from earnings, we also confirm that managers have used discretionary accruals as a tool to manipulate reported earnings upward to avoid losses.http://dx.doi.org/10.1080/23322039.2020.1849980earnings managementearnings management to avoid lossesearnings management in vietnam |
| spellingShingle | Ky Han Tran Nguyen Hung Duong Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies Cogent Economics & Finance earnings management earnings management to avoid losses earnings management in vietnam |
| title | Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies |
| title_full | Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies |
| title_fullStr | Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies |
| title_full_unstemmed | Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies |
| title_short | Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies |
| title_sort | earnings management to avoid earnings decreases and losses evidence from vietnamese listed companies |
| topic | earnings management earnings management to avoid losses earnings management in vietnam |
| url | http://dx.doi.org/10.1080/23322039.2020.1849980 |
| work_keys_str_mv | AT kyhantran earningsmanagementtoavoidearningsdecreasesandlossesevidencefromvietnameselistedcompanies AT nguyenhungduong earningsmanagementtoavoidearningsdecreasesandlossesevidencefromvietnameselistedcompanies |