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Impacts of Earnings Quality and Debt Maturity on Investment Efficiency: Study Case in Vietnam

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  • Dang Ngoc Hung
  • Vu Thi Thuy Van
  • Nguyen Thi Thanh Phuong

Abstract

The paper analyzed the impact of earnings quality (EQ), debt maturity, investment efficiency (IE) of listed companies on Vietnam stock market thanks to the regression methods of FEM, REM and GLS and data of enterprises in the period of 2010 - 2018. The research findings have shown that EQ and debt maturity have a positive impact on EI, in which EQ has a stronger influence than debt maturity. A review of both EQ and the debt maturity for overinvestment or underinvestment indicated a positive impact and the stronger impact on overinvestment. Based on the research findings, the authors have put forth several recommendations for investors, businesses and policy makers.

Suggested Citation

  • Dang Ngoc Hung & Vu Thi Thuy Van & Nguyen Thi Thanh Phuong, 2020. "Impacts of Earnings Quality and Debt Maturity on Investment Efficiency: Study Case in Vietnam," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 421-431, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:421-431
    DOI: 10.5430/ijfr.v11n4p421
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    Cited by:

    1. Cristina Gaio & Tiago Cruz Gonçalves & João Cardoso, 2023. "Investment Efficiency and Earnings Quality: European Evidence," JRFM, MDPI, vol. 16(4), pages 1-15, April.

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