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

Daeheon Choi, Chune Young Chung, Young-Eun Kim, Ye Jun Kim and Paul Moon Sub Choi
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Daeheon Choi: College of Business Administration, Kookmin University, Seongbuk-gu, Seoul 02707, Korea
Chune Young Chung: School of Business Administration, College of Business and Economics, Chung-Ang University, Dongjak-gu, Seoul 06974, Korea
Young-Eun Kim: Eller College of Management, The University of Arizona, Tucson, AZ 84721, USA
Ye Jun Kim: Simon Business School, University of Rochester, Rochester, NY 14627, USA
Paul Moon Sub Choi: College of Business Administration, Ewha Womans University, Seodaemun-gu, Seoul 03750, Korea

Sustainability, 2020, vol. 12, issue 15, 1-32

Abstract: 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.

Keywords: sustainable corporate ownership structure; corporate governance; earnings management; Vietnamese market (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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