The effect of new corporate accounting regime on earnings management: Evidence from Vietnam

Abstract

Following the mandatory adoption of new corporate accounting rules that bring Vietnamese accounting standards closer to the International Financial Reporting Standards (IFRS), this study examines the impact of these new rules on earnings management of Vietnamese listed firms. The study avails of financial statement figures during pre-adoption and post-adoption of the new corporate accounting regime (as of January 1, 2015) for the top-100 listed firms in Vietnam. The findings suggest there has been an improvement in earnings quality since listed firms moved to the new accounting regime.