PL EN


2017 | Volume 13 | Issue 3 | 287-294
Article title

Does foreign ownership impact accounting conservatism adoption in Vietnam

Content
Title variants
Languages of publication
EN
Abstracts
EN
This study investigates the effects of foreign ownership on accounting conservatism adoption in Vietnam. Although foreign ownership is found to have a positive relationship with accounting conservatism in Korea (An, 2015), there is still no general agreement on it. In this regard, the purpose of this study is to shed more light on the association between foreign ownership and accounting conservatism. Using data from Vietnamese firms listed on stock exchanges, the study finds that in contrast to the findings of An, foreign ownership is negatively associated with accounting conservatism. This result supports the transient hypothesis of foreign ownership, indicating that foreign investors with the low level of ownership do not have significant incentives to oversee managers, thus not influencing financial reporting quality.
Year
Volume
Issue
Pages
287-294
Physical description
Dates
published
2017-09-15
Contributors
author
  • Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
  • Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
  • Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
author
  • Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
References
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  • Bach, L. T., & Hang, N. T. (2016). The impact of financial statement disclosure on conservatism in financial reporting: Evidence from Vietnam. International Journal of Economics and Financial Issues, 6(6Special Issue), 158-161.
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  • Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37. https://doi.org/10.1016/S0165-4101(97)00014-1
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  • Financial Accounting Standards Board (1980). Statement of Financial Accounting Concepts No. 2: Qualitative Characteristics of Accounting Information. Norwalk: FASB.
  • Francis, B., Hasan, I., & Wu, Q. (2013). The benefits of conservative accounting to shareholders: Evidence from the financial crisis. Accounting Horizons, 27(2), 319-346. https://doi.org/10.2308/acch-50431
  • International Accounting Standards Board (1989). Framework for the preparation and presentation of financial statements. London: International Accounting Standards Committee Foundation.
  • KPMG (2016). Investing in Vietnam. Vietnam: KPMG. Retrieved Jund 23, 2017, from https://home.kpmg.com/content/dam/kpmg/vn/pdf/publication/2016/vn-2016-september-investing_in_vietnam.pdf.
  • Le, T. P. V., & Tannous, K. (2016). Ownership structure and capital structure: A study of Vietnamese listed firms. Australian Economic Papers, 55(4), 319-344. https://doi.org/10.1111/1467-8454.12089
  • Ruch, G. W., & Taylor, G. (2015). Accounting conservatism: A review of the literature. Journal of Accounting Literature, 34, 17-38. https://doi.org/10.1016/j.acclit.2015.02.001
  • Vo, X. V. (2016). Foreign investors and corporate risk taking behavior in an emerging market. Finance Research Letters, 18, 273-277. https://doi.org/10.1016/j.frl.2016.04.027
  • Vo, X. V. (2017). Foreign ownership and corporate cash holdings in emerging markets. International Review of Finance. http://dx.doi:10.1111/irfi.12130. https://doi.org/10.1111/irfi.12130
  • Watts, R. L. (2003). Conservatism in accounting part I: Explanations and implications. Accounting Horizons, 17(3), 207-221.
  • White, H. (1980). Heteroskedasticity consistent covariance matrix estimator and a direct test of heteroskedasticity. Econometrica, 48(4), 817-838. https://doi.org/10.2307/1912934
  • Xie, Y. (2015). Confusion over accounting conservatism: A critical review. Australian Accounting Review, 25(2), 204-216. http://dx.doi:10.1111/auar.12061. https://doi.org/10.1111/auar.12061
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.mhp-7eb9e38c-aa59-45fb-a509-349d6d5fc7ce
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