Sustainable Corporate Ownership Structures and Earnings Management in the Vietnamese Stock Market

Choi, Daeheon; Chung, Chune Young; Kim, Young Eun; Kim, Ye Jun; Choi, Paul Moon Sub

doi:10.3390/su12156089

Cited by 12 publications

(11 citation statements)

References 68 publications

(115 reference statements)

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“…Yasser et al (2016) found that foreign ownership had a positive effect on the quality of earnings of firms. Ajay and Madhumathi (2015), Alzoubi (2016) and Choi et al (2020) provided similar evidence that foreign ownership diminishes the opportunistic use of discretionary accruals. Guo et al (2015) and Debnath et al (2021) have documented that sophisticated foreign ownership plays a significant role in limiting REM.…”

Section: Foreign Ownershipmentioning

confidence: 87%

“…Previous studies focus on the relationship between OWS and AEM (e.g. Alves, 2012;Alzoubi, 2016;Choi et al, 2020;Jiang et al, 2020;Mohd Ali et al, 2010;Warfield et al, 1995). In this paper, we are contributing by testing its impact on REM.…”

Section: Introductionmentioning

confidence: 96%

“…Given that most of the previous studies discussed the effects of OWS on AEM (e.g. Alves, 2012;Alzoubi, 2016;Choi et al, 2020;Jiang et al, 2020;Mohd Ali et al, 2010;Warfield et al, 1995), we have a limited understanding of its governance effect on REM. Thus, our study fills this gap by examining the effect of OWS on REM.…”

Section: Introductionmentioning

confidence: 99%

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Ownership structure and real earnings management: evidence from an emerging market

Al-Duais

Malek

Hamid

et al. 2021

JAEE

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PurposeThis study aims to investigate the monitoring role of ownership structure (OWS) on real earnings management (REM) practices; previous studies primarily examined the effect of OWS on accrual-based earnings management.Design/methodology/approachThe sample of this study is 490 companies listed on the Malaysian Stock Exchange during the period 2013–2016 (1,960 company-year observations). The regression of a feasible generalized least square was used for data analysis. The authors use three regression models ordinary least squares, panel-corrected standard errors and Driscoll–Kraay standard errors to corroborate the findings and also examine alternative REM measures.FindingsAnalysis of the data shows that family, foreign and institutional ownership has a positive link with the quality of financial reporting and, to a large extent, is capable of alleviating REM. The findings also indicate that some form of OWS significantly affects REM, corroborating existing theories on corporate governance (CG) and the perspectives of practitioners.Practical implicationsThe evidence concerns the significant role played by the OWS in reducing REM activities. The findings are useful in support of regulatory activities, particularly in the design of policies to regulate the OWS. The results may also provide useful insights to inform other policymakers, investors, shareholders and researchers about the active role of family, foreign and institutional investors in monitoring Malaysia's public listed companies (PLCs) to strengthen CG practices. This also leads to less REM and enhances the quality of financial reporting.Originality/valueTo the authors' knowledge, this work is pioneering research from a developing country, specifically from Malaysia, to investigate the manner in which all possible OWSs influence REM. More importantly, the study recommends that regulators and researchers do not envisage OWS as a holistic phenomenon.

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Section: Foreign Ownershipmentioning

confidence: 87%

Section: Introductionmentioning

confidence: 96%

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Ownership structure and real earnings management: evidence from an emerging market

Al-Duais

Malek

Hamid

et al. 2021

JAEE

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“…While some studies have indicated that foreign ownership helps to restrict earnings management practices (Choi, Chung, Kim, Kim, & Choi, 2020;Debnath, Chowdhury, & Khan, 2021), others have concluded that foreign investors have no significant impact on earnings manipulation (Al-Haddad & Whittington, 2019).…”

Section: H5: a Statistically Significant Relationship Exists Between ...mentioning

confidence: 99%

Does Corporate Governance Constrain Earnings Management in an Unstable Economic and Political Environment?

Hassan

Abousamak

Hijazi

2022

5002

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The purpose of this research is to examine the effects of corporate governance structures on earnings management behavior in a weakly governed and politically unstable environment. A panel of data from 35 non-bank companies listed on the Palestine Exchange between 2012 and 2019 was employed. A fixed effects regression model was used to examine the impact of certain board characteristics (board size, board meetings, and audit committee formation) and ownership structures (institutional ownership, foreign ownership, and ownership concentration) on earnings management in the volatile and risky political and economic environment of Palestine. The findings indicate that corporate governance and ownership systems in Palestine appear to be ineffective in constraining earnings management practices. None of the board attributes appear to constrain earnings management practices. However, there is weak evidence to show that ownership concentration has some effect in curbing earnings manipulation. The findings of this study are expected to increase awareness among Palestinian regulators, investors, and other policymakers regarding the role of boards of directors and institutional and foreign shareholders in monitoring Palestinian listed companies to enhance corporate governance and the quality of financial reporting.

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“…Despite the increasing diminution of state ownership, state-owned enterprises still retained favoured status in the country. These characteristics set out a novel context for CSR in Vietnam research, as evident in a number of recent papers investigating the role of CSR practices in public sector organisations(Huy & Phuc, 2020; Limbu, Pham, & Mann, 2019;Tuan, 2016a), the role of the government in the development of Vietnamese agricultural cooperatives -a socially-oriented business(Cox & Le, 2014), and the impact of state/government ownership on CSR engagement of firms (D Choi, Chung, Kim, Kim, & Choi, 2020;Hoang, Abeysekera, & Ma, 2019;Kabir & Thai, 2017;Luong, Jorissen, & Paeleman, 2019;A. H. Nguyen & L. H. Nguyen, 2020…”

mentioning

confidence: 99%

Corporate social responsibility in Vietnam: Systematic review of research and future directions

Nguyen

Khan

Bensemann

2021

SBR

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Purpose Whilst research on corporate social responsibility (CSR) is reaching new territories, the extent to which such literature manifests itself in developing countries is yet to be fully understood. To that end, this study aims to investigate the understanding, evolution and practice of CSR in Vietnam. Design/methodology/approach A systematic review of the current literature in the recent past (2000–2020) has been embraced in this research. By analysing a total of 143 articles, the authors demonstrate that there has been visible growth in published articles related to CSR in Vietnam over the past 21 years. Findings The authors demonstrate that CSR research in Vietnam has significantly grown in the recent past. The results highlight the in-depth distribution of publications by year, journal, industry, nature and focus of CSR research in the country. Originality/value This study is not only the first to provide an enhanced overview of the current state of CSR knowledge in the country but also sets out directions within the CSR research agenda related to Vietnam and potentially other emerging and developing countries.

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Sustainable Corporate Ownership Structures and Earnings Management in the Vietnamese Stock Market

Cited by 12 publications

References 68 publications

Ownership structure and real earnings management: evidence from an emerging market

Ownership structure and real earnings management: evidence from an emerging market

Does Corporate Governance Constrain Earnings Management in an Unstable Economic and Political Environment?

Corporate social responsibility in Vietnam: Systematic review of research and future directions

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