IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i3p1061-d727163.html
   My bibliography  Save this article

Earnings Management, Board Composition and Earnings Persistence in Emerging Market

Author

Listed:
  • Nguyen Vinh Khuong

    (Faculty of Accounting and Auditing, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Abdul Aziz Abdul Rahman

    (College of Business Administration, Kingdom University, Riffa 40434, Bahrain)

  • Pham Quoc Thuan

    (Faculty of Accounting and Auditing, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Nguyen Thanh Liem

    (Vietnam National University, Ho Chi Minh City 700000, Vietnam
    Faculty of Finance and Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam)

  • Le Huu Tuan Anh

    (Faculty of Accounting and Auditing, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
    Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Cao Thi Mien Thuy

    (Vietnam National University, Ho Chi Minh City 700000, Vietnam
    Faculty of Finance and Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam)

  • Huynh Thi Ngoc Ly

    (Vietnam National University, Ho Chi Minh City 700000, Vietnam
    Institute for Development and Research in Banking Technology, University of Economics and Law, Ho Chi Minh City 700000, Vietnam)

Abstract

Income data are useful for making economic decisions and anticipating future revenues. Earning quality, or the utility of earnings in making decisions, is determined by real economic performance. Firms with greater performance should, on average, have higher profits quality. Managers, investors, and scholars are interested in the influence of earnings management (EM) on earnings persistence (EP). This study evaluates the relationship between these variables in terms of accrual, real EM, board composition, and EP. We conducted quantitative research using GMM regression on a sample of 228 listed businesses in the Vietnamese stock market from 2014 to 2017. Our findings indicate that accrual earnings management (AEM) is associated with a negative connection with EP, but real earnings management (REM) is associated with a mixed association with EP. Additionally, the data indicate that board of directors (BODs) play a critical role in EP. Our research contributes to the existing body of knowledge by establishing a foundation for future research in this subject and by proposing some feasible options for functional government agencies and enterprise management interested in enhancing EP.

Suggested Citation

  • Nguyen Vinh Khuong & Abdul Aziz Abdul Rahman & Pham Quoc Thuan & Nguyen Thanh Liem & Le Huu Tuan Anh & Cao Thi Mien Thuy & Huynh Thi Ngoc Ly, 2022. "Earnings Management, Board Composition and Earnings Persistence in Emerging Market," Sustainability, MDPI, vol. 14(3), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1061-:d:727163
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/3/1061/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/3/1061/
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li Xiong & Xiaoliang Long & Zhaoran Xu, 2022. "Cumulative Effect, Targeted Poverty Alleviation, and Firm Value: Evidence from China," Sustainability, MDPI, vol. 14(15), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1061-:d:727163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.