Corporate Governance and Earnings Management in Fraud-Sensitive Firms: Evidence from an Emerging Market

Thanh Thuy Nguyen, Thi Kieu Anh Phi (), Thi Minh Nguyet Bui and Thi Thoa Do
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Thanh Thuy Nguyen: Academy of Finance
Thi Kieu Anh Phi: Academy of Finance
Thi Minh Nguyet Bui: Academy of Finance
Thi Thoa Do: Academy of Finance

A chapter in Proceedings of the 6th International Conference on Research in Management & Technovation, 2026, pp 508-519 from Springer

Abstract: Abstract This study explores how ownership structure and board characteristics influence earnings management within fraud-sensitive listed firms on Vietnam’s stock market from 2017 to 2024. In contrast to prior research, which focus on general firm populations, this research uniquely targets 634 firm-year observations identified as high-risk for financial statement manipulation from a dataset of 2,826 firm-year observations. The findings show that foreign and institutional ownership, ownership concentration, and larger board size are associated with lower earnings management. In contrast, revenue growth increases manipulation, while firm size serves as a constraint. In addition to standard regression analysis, this study employs quantile regression to further examine the robustness of governance impacts across different levels of earnings manipulation. This research provides fresh empirical insights within the setting of an emerging market, highlighting how effective corporate governance can reduce the likelihood of earnings manipulation in environments vulnerable to fraud. The results deliver actionable recommendations for business executives, investors, and policymakers aiming to enhance financial transparency and safeguard investor interests.

Keywords: Earnings management; ownership structure; corporate governance; financial statement fraud; Vietnam (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-95-9113-8_41

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DOI: 10.1007/978-981-95-9113-8_41

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