Corporate governance factors impact on the earnings management – evidence on listed companies in ho chi minh stock exchange

Abstract

In the trend of regional and international integration, many issues confront companies facing global challenges because of the competitive pressure on the international market. Many companies have had a lot of strategies to break in and take the lead for investors, but there are also some businesses in some ways for Earnings Management (EM). EM action has a great impact on investors and shareholder interests. Authors considered the quantitative model to examine the impact of corporate governance factors to EM behavior for 173 listed companies of Ho Chi Minh Stock Exchange (HOSE) in the period 2013– 2017. The results shown that the professional experience had a positive effect, while the board size variable had the opposite effect to EM. Authors suggested some policies for listed companies that need to implement the monitoring mechanism, strengthen the internal control tools, internal audit to control the timely EM behavior.