Earnings Management and Investor Protection: An International Comparison

Accounting information must be accumulated and summarized before it can be communicated and analysed. In this chapter, we will discuss the steps involved in the accounting cycle. We will emphasize the subject of adjusting entries. Throughout an accounting period, cash receipts and cash disbursements are recorded. At the end of the accounting period, adjusting entries are required so that revenues and expenses are reflected on the accrual basis of accounting. Adjusting entries are simply entries required to bring account balances up to date. The failure to record proper adjustments will cause errors on both the income statement and the balance sheet.

Accounting Information System

The purpose of the research is to analyze the behavioral intention to adopt social media in SMEs affected by the COVID-19 crisis, based on the TOE Model This study uses the TOE framework as a theoretical basis This research is important because COVID-19 has destroyed most of the SMEs, and SMEs are exposed to social media technology to market their products The success of social media adoption has helped SMEs to be able to rise from adversity Respondents in this study were 250 SMEs in the Special Region of Yogyakarta, Indonesia The data analysis technique used is structural equation modeling with AMOS The results of this study indicate that SMEs affected by the COVID-19 crisis have a high awareness of social media and have a high intention to adopt social media as a way to market their products and connect with customers The intention to adopt social media is significantly influenced by the technological context, organizational context, environmental context, and social media awareness The findings of this study suggest that in times of crisis due to the COVID-19 pandemic, the Government support is needed The Government needs to open services for SMEs whose businesses are affected by the pandemic

https://www.koreascience.or.kr:443/article/JAKO202032462597184.pdf

Social Media Adoption in SMEs Impacted by COVID-19: The TOE Model

The purpose of this paper is to provide a systematic and comprehensive review of the existing literature on the determinants of firms reporting practices.,Following a systematic method, the sample literature of 135 studies was collected from the Scopus database. These studies were evaluated in terms of the theoretical lenses applied in the literature, yearly trend, regional distribution, research settings and prior studies finding to provide some recommendations for further research.,The investigation revealed that the literature was more interested in the agency theory in investigating the drivers of voluntary reporting such as company size, age, leverage, liquidity, profitability, corporate governance and ownership structure. Although firm-specific determinants were the most examined in the previous studies, however, the result is still inconclusive. Also, limited work was found on the country-related factors, while internal audit impact has yet to be explored.,Being the first of its kind, this research provides a comprehensive review of the current research landscape on the drivers of environmental or social disclosure and highlights several interesting opportunities for future research.

Drivers of corporate voluntary disclosure: a systematic review

Research background: The paper investigates the earnings management phenomenon in the context of Central European countries, attempting to identify the factors and incentives that can influence earnings management behavior on a sample of 8,156 enterprises from Slovakia, the Czech Republic, Hungary, and Poland.
Purpose of the article: The main purpose of the manuscript is to prove that there are significant differences in earnings management practices (measured by discretionary accruals) across the countries and to find the firm-specific features that influence the way enterprises manage their earnings.
Methods: The modified Jones model was used to calculate the discretionary accruals, which are further analyzed across the countries. The statistically significant differences were confirmed across the countries. Thus, the impact of the economic sector, firm size, firm age, legal form, and ownership structure on earnings management behavior is studied by the Kruskal-Wallis test. The Dunn-Bonferroni post hoc tests then revealed the significant differences across the categories of the investigated earnings management determinants. To find the association between the particular earnings management practice (income-increasing or income-decreasing manipulation), correspondence analysis was used to visualize the mutual relations.
Findings & value added: The results of the realized investigation revealed that the economic sector is one of the most important earnings management determinants, as its statistical significance was confirmed in each analyzed country. The correspondence analysis determined specific sectors, where income-increasing manipulation with earnings is practiced (NACE codes F, J, K, M, N), and vice versa, income-decreasing earnings management is characteristic for enterprises in sectors A, C, D, G or L. In specific economic conditions, firm size is also a relevant indicator (Hungary), or firm age and legal form and ownership structure (Poland). The recognition of crucial earnings management incentives may be helpful for authorities, policymakers, analysts and auditors when identifying various techniques and practices of earnings manipulation which could vary across the sectors and taking necessary measures to mitigate potential financial risks.

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Quo Vadis, earnings management? Analysis of manipulation determinants in Central European environment

This paper explores the impact of capital structure on firm performance in the context of Vietnam. The paper investigates the different effect of capital structure on firm performance in state-owned and non-state enterprises listed on the Vietnam stock market. The panel data of research sample includes 488 non-financial listed companies on the Vietnam stock market for a period of six years, from 2013 to 2018. The Generalized Least Square (GLS) is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, firm performance is measured by return on equity (ROE), return on assets (ROA), and earnings per share (EPS). The ratios of short-term liabilities, long-term liabilities, and total liabilities to total assets are proxy for capital structure. Firm sizes, growth rate, liquidity, and ratio of fixed assets to total assets are control variables in the study. The empirical results show that capital structure has a statistically significant negative effect on the firm performance. The result also shows this effect is stronger in state-owned enterprises than non-state enterprises in Vietnam. These evidences provide a new insight to managers of both state-owned and non-state enterprises on how to improve the firm’s performance with capital structure.

https://www.koreascience.or.kr:443/article/JAKO202014862061206.pdf

The Impact of Capital Structure on Firm Performance: Evidence from Vietnam

This paper investigates the impact of working capital management on the firm‟s profitability. The research sample includes 119 non-financial listed companies on Vietnam stock market over a period of 9 years from 2010 to 2018. Two statistical approaches include Ordinary least squares (OLS) and fixed effects model (FEM) are employed to address econometric issues and to improve the accuracy of the regression coefficients. The empirical results show the negative and significant impacts of the working capital management, which measured by cash conversion cycle (CCC) and three components of the CCC including accounts receivable turnover in days (ARD), inventory turnover in days (INVD), and accounts payable turnover in days (APD) on the firm‟s profitability measured by return on assets (ROA) and Tobin‟s Q. It implies that firms can increase profitability by keeping the optimization of the working capital management measured by the CCC, which includes shortening the time to collect money from clients, accelerating inventory flow and hold the low payment time to creditors. Besides, the profitability of firms was impacted by the sale growth rate, firm size, leverage, and age. Therefore, this paper provides a new insight to managers on how to improve the firm‟s profitability with working capital management.

https://www.koreascience.or.kr:443/article/JAKO202014862061570.pdf

Impact of Working Capital Management on Firm's Profitability: Empirical Evidence from Vietnam

The paper investigates the effect of the factors on the disclosure of sustainable development information of enterprises. The research sample includes 120 manufacturing companies listed on Vietnam stock market in 2019. This research uses ordinary least squares (OLS) to address econometric issues and to improve the accuracy of the regression coefficients. The empirical results show that five variables have a statistically significant positive effect on disclosure of sustainable development information of manufacturing companies, including firm size (SIZE), independence of board of directors (BOD), foreign ownership (FRO), return on equity (ROE), and financial leverage (LEV). The results indicate that state ownership (STO) has a statistically significant negative effect on disclosure of sustainable development information of manufacturing companies listed on Vietnam stock market. Besides, the research results also show there is a large difference in the disclosure of sustainable development information between listed companies in Vietnam, those of other emerging economies in the region, and the companies in developed markets. Therefore, this paper provides a new insight to managers and related parties on how to improve the firm’s sustainability disclosure to bring benefit for the firm itself and the stakeholders by reasonable decisions about the factors that affect disclosure of sustainable development information.

https://www.koreascience.or.kr:443/article/JAKO202017764018049.pdf

Determinants of Sustainability Disclosure: Empirical Evidence from Vietnam

This study examines the impact of corporate governance, reflecting a wide spectrum of board characteristics and ownership structure on agency costs in 281 listed companies on Ho Chi Minh Stock Exchange (HOSE) in Vietnam in the period 2013–2018. For this purpose, three board characteristics were chosen: (1) the size of board of directors, (2) equilibrium between non-executive and executive members of the board of directors, (3) the CEO chair duality and three types of ownership structures were chosen: (1) management ownership, (2) government ownership, (3) foreign ownership. An inverse proxy of agency costs is used: asset utilization ratio (asset turnover), which reflects the managerial efficiency. The research methodology includes three statistical approaches: Ordinary least squares (OLS), fixed effects model (FEM) and random effects model (REM) are considered to employ to address econometric issues and to improve the accuracy of the regression coefficients. The results can create effective corporate governance mechanisms in controlling the managerial opportunistic behavior to lower agency conflicts, and hence lower agency costs.

https://www.econstor.eu/bitstream/10419/239191/1/1737555891.pdf

Corporate Governance and Agency Cost: Empirical Evidence from Vietnam

Article history: Received September 2 2019 Received in revised format September 2 2019 Accepted October 15 2019 Available online October 17 2019 This research is conducted to investigate the factors affecting the accounting information systems quality. Data was collected by using questionnaire delivered to 347 participants who are board of director’s members and managers. The statistical methods approaches are employed to address the research issues including Explanatory Factor Analysis (EFA) and Ordinary Least Squares (OLS). The findings showed that various factors had significant impacts on the accounting information systems quality including (i) organization culture, (ii) manager participation, (iii) information technology, (iv) information technology knowledge of managers, (v) accounting knowledge of managers, (vi) accounting information applications, (vii) consultation of external experts and (viii) training activities for users in accounting information systems. Based on the research results, some key intuitive recommendations were proposed aiming to improve the accounting information systems quality of Vietnamese Enterprises. authors; licensee Growing Science, Canada by the 20 © 20

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Anh Huu Nguyen

Papers

The Impact of Capital Structure on Firm Performance: Evidence from Vietnam

Impact of Working Capital Management on Firm's Profitability: Empirical Evidence from Vietnam

Determinants of Sustainability Disclosure: Empirical Evidence from Vietnam

Corporate Governance and Agency Cost: Empirical Evidence from Vietnam

Determinants of accounting information systems quality: Empirical evidence from Vietnam