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

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  • Daeheon Choi

    (College of Business Administration, Kookmin University, Seongbuk-gu, Seoul 02707, Korea)

  • Chune Young Chung

    (School of Business Administration, College of Business and Economics, Chung-Ang University, Dongjak-gu, Seoul 06974, Korea)

  • Young-Eun Kim

    (Eller College of Management, The University of Arizona, Tucson, AZ 84721, USA)

  • Ye Jun Kim

    (Simon Business School, University of Rochester, Rochester, NY 14627, USA)

  • Paul Moon Sub Choi

    (College of Business Administration, Ewha Womans University, Seodaemun-gu, Seoul 03750, Korea)

Abstract

We conducted an empirical analysis to verify the relationship between companies’ ownership structures and earnings management. Our sample included 480 nonfinancial companies listed on Vietnam’s Ho Chi Minh Stock Exchange and Hanoi Stock Exchange from 2012 to 2017, and our explanatory variables included several ratios, such as the controlling shareholders’ stake, management ownership stake, state-owned stake, and foreign ownership stake, which represent different ownership structures. We examined the effects of these ratios on earnings management. Our results suggested that earnings management has a significant linear relationship with the state-owned and foreign ownership stakes. Our results can enhance the understanding of the role of companies’ sustainable ownership structures in limiting earnings management, and they can contribute to future studies of the relationship between earnings management and corporate social responsibility and sustainability reporting assurance practices that focus on corporate ownership structures.

Suggested Citation

  • Daeheon Choi & Chune Young Chung & Young-Eun Kim & Ye Jun Kim & Paul Moon Sub Choi, 2020. "Sustainable Corporate Ownership Structures and Earnings Management in the Vietnamese Stock Market," Sustainability, MDPI, vol. 12(15), pages 1-32, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6089-:d:391353
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    1. Mingyuan Guo & Chendi Zheng, 2021. "Foreign Ownership and Corporate Social Responsibility: Evidence from China," Sustainability, MDPI, vol. 13(2), pages 1-22, January.
    2. José Ignacio Jarne-Jarne & Susana Callao-Gastón & Miguel Marco-Fondevila & Fernando Llena-Macarulla, 2022. "The Impact of Organizational Culture on the Effectiveness of Corporate Governance to Control Earnings Management," JRFM, MDPI, vol. 15(9), pages 1-19, August.

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