THE IMPACT OF BOARD CHARACTERISTICS AND AUDIT QUALITY ON EARNINGS MANAGEMENT: EVIDENCE FROM LISTED COMPANIES IN VIETNAM

Abstract

This study examines the impact of board characteristics and audit quality on earnings management (EM) among Vietnamese listed companies. Using a dataset of 560 firms during the period 2020–2024, the research applies panel-data regression models to enhance the reliability and robustness of the empirical results. The findings reveal that board size is positively associated with the level of EM, whereas board independence helps mitigate earnings manipulation, underscoring the crucial role of independent directors in strengthening financial reporting transparency. In contrast, board meeting frequency and Big4 auditors do not exhibit statistically significant effects within the research context. Regarding the control variables, firm size and asset turnover show a positive relationship with EM, while profitability is negatively associated with EM, indicating that more efficient firms have fewer incentives to manipulate earnings. Overall, the study provides additional empirical evidence on the influence of corporate governance mechanisms on financial transparency in Vietnamese listed firms and offers practical implications for regulators, investors, and corporate managers.