Research on factors affecting the behavior of profit adjustment behavior of companies listed on the Vietnamese stock market

Abstract

The aim of this study is to assess how various factors affect the profit adjustment behavior of publicly listed companies. The study analyzes the audited financial statements of 172 companies over a period of 5 years, from 2019 to 2023. It employs a quantitative research method using a multiple linear regression model, with the dependent variable measured according to the Friedlan model (1994) and 7 independent variables. The findings indicate that business efficiency (ROA), fixed asset ratio (TANG), and audit firm quality (AUD) have a positive impact on profit adjustment behavior. On the contrary, business risk (RISK) has a negative impact on profit management behavior. These research results have important implications for companies, regulators, and investors in terms of evaluating the quality of reported profits by businesses.