Anti-corruption disclosure and earnings management in Vietnam: the moderating impact of gender diversity and audit firm quality

Hien Khanh Duong and Huu Cuong Nguyen

Asian Review of Accounting, 2025, vol. 34, issue 2, 410-437

Abstract: PurposeThis study investigates how board gender diversity and audit firm quality moderate the relationship between anti-corruption disclosure (ACD) and earnings management (EM) among listed companies in Vietnam, highlighting governance mechanisms that mitigate financial misconduct.Design/methodology/approachThe study analyses the ACD practices of the 100 largest Vietnamese listed firms by market capitalisation as of 31 December 2023, using the standardised GRI-205 framework. Data from annual reports, financial statements, ESG and sustainability reports for 2021–2023 were examined. A panel regression model incorporating the COVID-19 pandemic as an economic shock was employed, with board gender diversity and audit firm quality included as moderator variables.FindingsOver 40% of disclosed anti-corruption activities relate to charitable actions, raising transparency concerns and suggesting potential “greenwashing” practices. Vietnamese companies’ ACD practices remain relatively undeveloped. Regression analysis shows significant negative associations between ACD, board gender diversity and EM. Audit firm quality demonstrated a particularly strong moderating effect. Notably, boards with greater gender diversity proved more effective at mitigating EM during economic crises, underscoring the importance of diverse leadership.Practical implicationsFindings advocate for strengthened corporate governance frameworks, improved ACD regulations and greater alignment with the United Nations Sustainable Development Goals. Policymakers and investors should prioritise transparency to mitigate EM, particularly during economic uncertainty.Originality/valueThis study is the first to examine the combined impact of ACD, board gender diversity, and audit firm quality on EM in Vietnam. It highlights critical governance reforms, enhanced disclosure standards and audit quality in fostering transparency and corporate integrity.

Keywords: Audit firm quality; Anti-corruption practices; Corporate governance; Earnings management; Board gender diversity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-12-2024-0381

DOI: 10.1108/ARA-12-2024-0381

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