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Effect of Debt Structure on Earnings Quality of Energy Businesses in Vietnam

Author

Listed:
  • Nguyen Thi Thanh Phuong

    (Thuongmai University, Hanoi, Vietnam,)

  • Dang Ngoc Hung

    (Hanoi University of Industry, Hanoi, Vietnam,)

  • Vu Thi Thuy Van

    (National Economics University, Hanoi, Vietnam.)

  • Ngo Thanh Xuan

    (National Economics University, Hanoi, Vietnam.)

Abstract

The paper examines the impact of debt structure (DS) on the earnings quality (EQ) of energy businesses (DN) in Vietnam. The authors measure EQ in terms of profit management to consider the effect of accounts payable; short-term debts and loans; long-term debts and loans on earnings quality. The research uses generalized least squares (GLS) regression method with data gathered from 468 observations collected at energy enterprises listed on the stock market in Vietnam in the period of 2009-2018. The study results have found that accounts payable to suppliers and short-term debts and loans have negative effect on earnings quality; while long-term debts and loans have positive effect on EQ. Besides, firm size has a positive effect on EQ, while profitability is a not statistically significant variable. The empirical research results are useful basis to help businesses improve their earnings quality, thereby helping businesses to consider an appropriate level of debt structure.

Suggested Citation

  • Nguyen Thi Thanh Phuong & Dang Ngoc Hung & Vu Thi Thuy Van & Ngo Thanh Xuan, 2020. "Effect of Debt Structure on Earnings Quality of Energy Businesses in Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 396-401.
    • Handle: RePEc:eco:journ2:2020-03-50
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    References listed on IDEAS

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    Cited by:

    1. Hung, Dang Ngoc, 2022. "Impact of Debt Structure, State Ownership on Business Performance in Energy Enterprises: A Case Study in Vietnam," OSF Preprints nhp8v, Center for Open Science.

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    More about this item

    Keywords

    debt structure; earnings quality; energy business;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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