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The Relationship between Real Earnings Management and Firm Performance: The Case of Energy Firms in Vietnam

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  • Nguyen Vinh Khuong

    (Faculty of Accounting and Auditing, University of Economics and Law, VNU-HCM, Ho Chi Minh City, Vietnam)

  • Nguyen Tran Thai Ha

    (Faculty of Finance and Accounting, Saigon University, Ho Chi Minh City, Vietnam,)

  • Phung Anh Thu

    (Faculty of Finance and Accounting, Nguyen Tat Thanh University, Ho Chi Minh City, Vietnam)

Abstract

This investigation analyses the influence of real activities earnings management on firm performance of the energy listed firms on Vietnam s stock market. Our data collection constitutes 29 energy companies on Vietnam stock markets (HNX and HOSE) in the period from 2010 to 2016. We used regression analysis in accordance with panel data, namely fixed effects model and random effects model. The results determine that real activity earnings management positively impacts on firm performance. This implies that increasing current sales activities will have a positive impact on current earnings. However, this may be pernicious to the company in the future. There is a positive association between firm size, cash from operating activities, growth opportunities and firm performance while firm leverage and tangible asset have a negative association. Research results are significant for regulators and investors in emerging markets.

Suggested Citation

  • Nguyen Vinh Khuong & Nguyen Tran Thai Ha & Phung Anh Thu, 2019. "The Relationship between Real Earnings Management and Firm Performance: The Case of Energy Firms in Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 307-314.
    • Handle: RePEc:eco:journ2:2019-02-37
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    Cited by:

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    2. Darya Pyatkina & Tamara Shcherbina & Vadim Samusenkov & Irina Razinkina & Mariusz Sroka, 2021. "Modeling and Management of Power Supply Enterprises’ Cash Flows," Energies, MDPI, vol. 14(4), pages 1-17, February.
    3. Saoussen Boujelben & Hela Khemakhem-Feki & Ahmad Alqatan, 2020. "Real earnings management and the relevance of operating cash flows: A study of french listed firms," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(4), pages 218-229, December.

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    More about this item

    Keywords

    real earnings management; firm performance; energy firms; Vietnam.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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