The impact of related parties’ trading on the listed company’s earnings management - evidence in Vietnam

• Autorzy: Hong Nguyen Thi Phuong , Loi Tran Van

Identyfikatory

DOI

10.2478/manment-2019-0053

• Języki publikacji: EN

Abstrakty

EN

This study considers the impact of related parties’ trading (RPTs) on the listed company’s earnings management level (EM) in Vietnam’s securities market, of which EM is measured according to the modified Jones model by Dechow and Associates (1995). Through using 5 more control variables as public. How auditing firm, firm size, financial leverage, revenue growth and operating cash flow affect EM, The research results show that RPTs impact the same dimension on EM level. The study provides empirical evidence of the impact of RPTs on the EM level of companies listed on Vietnam’s securities market. Among its results to science is that it indicated with evidence, the higher the RPTs are, the greater its EM level becomes. We also identify practical contributions and limitations shown in the conclusion section.

Słowa kluczowe

EN

listed company; earnings management; related parties trading; modified Jones model

PL

spółki giełdowe; zarządzanie zyskami; partner handlowy; model Jonesa

• Wydawca: University of Zielona Góra, Faculty of Economics and Management
• Czasopismo: Management
• Rocznik: 2020
• Tom: Vol. 24, no. 2
• Strony: 181--208
• Opis fizyczny: Bibliogr. 20 poz., rys., tab., wykr.

Twórcy

autor

Hong Nguyen Thi Phuong

• University of Economics, Ho Chi Minh city Vietnam

autor

Loi Tran Van

• University of Economics, Ho Chi Minh city Vietnam

Bibliografia

• [1] Alhadab, M., Abdullatif, M., & Mansour, I. (2020). Related party transactions and earnings management in Jordan: the role of ownership structure. Journal of Financial Reporting and Accounting.
• [2] Chen, J. J., Cheng, P., & Xiao, X. (2011). Related party transactions as a source of earnings management. Applied Financial Economics, 21(3), 165-181.
• [3] Dao, L.X., Quynh, T.P., & Thinh, N.N.P. (2017). Các nhân tố tác động đến QTLN của các công ty niêm yết trên sàn chứng khoán Thành phố Hồ Chí Minh. Kỷ yếu hội thảo khoa học: Những vấn đề kê toán – kiểm toán được quan tâm trong nghiên cứu khoa học và trong thực tiễn hiện nay. NXB Đại Học Quốc Gia TP. Hồ Chí Minh.
• [4] Chu-Yang, C., & Hsu Joseph, C. S. (2010). The role of corporate governance in related party transactions. SSRN paper, (1539808).
• [5] Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting learnings management. Accounting review, 193-225.
• [6] El-Helaly, M., Georgiou, I., & Lowe, A. D. (2018). The interplay between related party transactions and earnings management: The role of audit quality. Journal of International Accounting, Auditing and Taxation, 32, 47-60.
• [7] Freeman, E., (1984). Strategic Management: A Stakeholder Approach. Pitman, Boston.
• [8] Gordon, E. A., & Henry, E. (2005). Related party transactions and earnings management. Available at SSRN 612234.
• [9] Hu, S., Li, G., Xu, Y. and Fan, X. (2012), Effects of internal governance factors on cross-border–related party transactions of Chinese companies, Emerging Markets Finance & Trade, Vol. 48 No. 10, pp. 58-73.
• [10] Hung, D.N. (2015). Nghiên cứu xu hướng QTLN do thay đổi thuế suất thuế thu nhập doanh nghiệp của các công ty niêm yết trên thị trường chứng khoán Việt Nam. Tạp chí Kinh Tế & Phát Triển, số 219 tháng 9/2015.
• [11] Hong, N.T.P. (2017). Phân tích thực trạng mức độ QTLN của các công ty niêm yết trên thị trường chứng khoán Việt Nam bằng mô hình Jones điều chỉnh. Tạp chí Kinh tế&Phát triển, số 245 tháng 11/2017.
• [12] Huy, D.T.N. (2012). Estimating Beta of Viet Nam listed construction companies groups during the crisis. Journal of Integration and Development, 15(1): 57-71.
• [13] Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
• [14] Kuan, L., Tower, G., Rusmin, R., & Van der Zahn, J. W. M. (2010). Related party transactions and earnings management. Indonesian Journal of Accounting and Auditing, 14(2).
• [15] Marchini, P. L., Mazza, T., & Medioli, A. (2018). Related party transactions, corporate governance and earnings management. Corporate Governance: The International Journal of Business in Society, 18(6), 1124-1146.
• [16] Hong, N.T.P. and Linh, D.T.K. (2019). Effects of Earnings Quality on Investor’s Decision - Empirical evidence in Vietnam Stock Market. International Conference on Business and Finance, ICBF2019. Economic University Ho Chi Minh City. August 23.
• [17] Hong, N.T.P. and Thuong, N.T. (2015). Board Characteristics Affecting Earnings Management: An Empirical Investigation in Vietnam. International Conference on Accounting, ICOA2015.YOKOHAMA National University, Aston University, Economic University Danang. May 22.
• [18] Ross, S. A., 1977. The determination of financial structure: the incentive signalling approach. The bell Journal of economics, 8: 23-40.
• [19] Sarlak, N., & Akbari, M. (2014). Relationship between related party transactions and earnings management. Journal of Accounting and Auditing Review, 20(4), 77-92.
• [20] Srinivasan, P. (2013). An analysis of related-party transactions in India. IIM Bangalore Research Paper, (402).