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2/2020 vol. 24
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The impact of related parties’ trading on the listed company’s earnings management - evidence in Vietnam
Nguyen Thi Phuong Hong 1
,
 
Tran Van Loi 2
 
 
 
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1
Ph.D., University of Economics, Ho Chi Minh cityVietnam
 
2
M.Sc., University of Economics, Ho Chi Minh cityVietnam
 
 
Online publication date: 2020-12-31
 
 
Management 2020;24(2):181-208
DOI: https://doi.org/10.2478/manment-2019-0053
 
 
Article (PDF)
References (20)
 
KEYWORDS
Earnings management
Related parties trading
modified Jones model
 
JEL CLASSIFICATION CODES
M4
M41
M48
 
ABSTRACT
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 showin in the conclusion section.
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