The impact of foreign ownership, corporate governance on earning management: Fuzzy-set qualitative comparative analysis

Abstract

The study examines the effect of foreign ownership, corporate governance index on earning management in 169 listed companies in Vietnam from 2016 to 2020. Fuzzy-set Qualitative Comparative Analysis (fsQCA) method is used to test this relationship. The analysis results show that foreign ownership, corporate governance index negatively affects earning management. In particular, the interaction between foreign ownership and corporate governance index also has a negative effect on earning management. The research provides some implications to help businesses control earning management behavior and provide accurate financial information to stakeholders.