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Earnings Manipulation Benchmark For Nonfinancial Listed Companies In Vietnamese Stock Market

Author

Listed:
  • Nguyen Huu Anh
  • Nguyen Ha Linh
  • Sung Wook Yoon

Abstract

The paper examines earnings management detection using the Beneish M-score benchmark model on a sample of 468 non-financial Vietnamese companies listed on the Hochiminh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) during 2013-2014. The results show that 40 % of non-financial Vietnamese- listed companies were involved in earnings management, and the sampled observations do fit the Beneish M-score model. This study suggests that the M-score model is a useful technique to use to detect the earnings manipulation behaviors of companies in Vietnam. The M-score model is also a reliable tool for investors to make when making decisions and verifying the reliability of accounting information found in financial reports.

Suggested Citation

  • Nguyen Huu Anh & Nguyen Ha Linh & Sung Wook Yoon, 2018. "Earnings Manipulation Benchmark For Nonfinancial Listed Companies In Vietnamese Stock Market," Accounting & Taxation, The Institute for Business and Finance Research, vol. 10(1), pages 39-49.
    • Handle: RePEc:ibf:acttax:v:10:y:2018:i:1:p:39-49
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    References listed on IDEAS

    as
    1. Messod D. Beneish & Charles M.C. Lee & D. Craig Nichols, 2013. "Earnings Manipulation and Expected Returns," Financial Analysts Journal, Taylor & Francis Journals, vol. 69(2), pages 57-82, March.
    2. Degeorge, Francois & Patel, Jayendu & Zeckhauser, Richard, 1999. "Earnings Management to Exceed Thresholds," The Journal of Business, University of Chicago Press, vol. 72(1), pages 1-33, January.
    3. Roychowdhury, Sugata, 2006. "Earnings management through real activities manipulation," Journal of Accounting and Economics, Elsevier, vol. 42(3), pages 335-370, December.
    4. Park, Myung Seok & Park, Taewoo, 2004. "Insider sales and earnings management," Journal of Accounting and Public Policy, Elsevier, vol. 23(5), pages 381-411.
    5. Messod D. Beneish, 1999. "The Detection of Earnings Manipulation," Financial Analysts Journal, Taylor & Francis Journals, vol. 55(5), pages 24-36, September.
    6. Patricia M. Dechow & Weili Ge & Chad R. Larson & Richard G. Sloan, 2011. "Predicting Material Accounting Misstatements," Contemporary Accounting Research, John Wiley & Sons, vol. 28(1), pages 17-82, March.
    7. Jones, Jj, 1991. "Earnings Management During Import Relief Investigations," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 29(2), pages 193-228.
    8. Burgstahler, David & Dichev, Ilia, 1997. "Earnings management to avoid earnings decreases and losses," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 99-126, December.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    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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