FACTORS AFFECTING EARNINGS MANAGEMENT: CASE STUDY OF LISTED FIRMS IN VIETNAM

Abstract

The paper examines the factors that influence accruals based earnings
management (AEM) and real earnings manipulation (REM) of enterprises in
Vietnam. Results showed that six out of eight factors had effect on AEM and
were statistically significant at 1%, 5% and 10%, respectively. There were two
factors that affected REM. Five of them had positive impact on AEM1 (i.e
financial statement, the chairman of the board of directors cum general director,
business performance, financial leverage and share issuance). In contrast, size
and quality of audit had negative one AEM1. This finding provides further
evidence of EM in terms of AEM and REM, and suggests the use of EM models for
future studies on Enterprises in Vietnam and other countries in the world.