Sustainable Corporate Ownership Structures and Earnings Management in the Vietnamese Stock Market

We conducted an empirical analysis to verify the relationship between companies’ ownership structures and earnings management. Our sample included 480 nonfinancial companies listed on Vietnam’s Ho Chi Minh Stock Exchange and Hanoi Stock Exchange from 2012 to 2017, and our explanatory variables inclu...

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Bibliographic Details
Published in:Sustainability 2020-08, Vol.12 (15), p.6089
Main Authors: Choi, Daeheon, Chung, Chune Young, Kim, Young-Eun, Kim, Ye Jun, Choi, Paul Moon Sub
Format: Article
Language:English
Subjects:
Accounting
Boards of directors
Corporate profits
Corporate structure
Earnings management
Economic growth
Financial statements
GDP
Gross Domestic Product
Investments
Management decisions
New stock market listings
Operating systems
Privatization
Profitability
Quality
Securities markets
Social responsibility
Stock exchanges
Stockholders
Sustainability
Sustainability reporting
Voting rights
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Summary:We conducted an empirical analysis to verify the relationship between companies’ ownership structures and earnings management. Our sample included 480 nonfinancial companies listed on Vietnam’s Ho Chi Minh Stock Exchange and Hanoi Stock Exchange from 2012 to 2017, and our explanatory variables included several ratios, such as the controlling shareholders’ stake, management ownership stake, state-owned stake, and foreign ownership stake, which represent different ownership structures. We examined the effects of these ratios on earnings management. Our results suggested that earnings management has a significant linear relationship with the state-owned and foreign ownership stakes. Our results can enhance the understanding of the role of companies’ sustainable ownership structures in limiting earnings management, and they can contribute to future studies of the relationship between earnings management and corporate social responsibility and sustainability reporting assurance practices that focus on corporate ownership structures.
ISSN:2071-1050
2071-1050
DOI:10.3390/su12156089