Ownership Concentration and Accounting Conservatism: The Moderating Role of Board Independence

The purpose of this study is to examine the moderating effect board independence on relationship between ownership concentration and accounting conservatism. Using fixed-effect regressions for a sample 165 Vietnamese listed companies from 2007 2017, results revealed that proportion outstanding shares owned by largest shareholder negatively associated with conservatism plays role in relationship. Our are robust after applying alternative measures correcting potential endogeneity using fixed-effects regression instrumental variables. Overall, our evidence shows firms concentrated should keep high non-executive ratio maintain In other words, increasing number directors boards substantial held likely strengthen information environment, giving financial reporting more credibility.JEL Classification: G30; G32. Doi: 10.28991/ESJ-2023-07-01-07 Full Text: PDF