Board Characteristics and Earnings Management: Evidence from the Vietnamese Market

This study empirically analyzes the relationship between Vietnamese firms’ earnings management, board characteristics, and ownership structures. I use size proportion of outside directors to reflect percentages directors, chief executive officer (CEO) discretionary accruals, measured by modified Jones model, proxy for management. From analyzing firms listed on Ho Chi Minh Hanoi Stock Exchanges from 2012 2017, find that CEOs are negatively related whereas directors’ percentage is positively related. The not significantly associated with provides policy insights improving financial transparency. Specifically, corporate laws regulating composition should be enacted ensure all meet a minimum number members. Moreover, mandating boards include independent necessary, as establishing an director system within Vietnam’s law can strengthen sustainability directors.