Does foreign ownership impact accounting conservatism adoption in Vietnam

• Authors: Le Tuan Bech , Pavelková Drahomíra , Do Thi Thanh Nhan , Ngo Ming Vu
• 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.

Keywords

EN

Accounting; accounting information; financial reporting

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Prague Development Center, Czech Republic
• Journal: Business and Economic Horizons
• Year: 2017
• Volume: Volume 13
• Issue: Issue 3
• Pages: 287-294

Dates

published

2017-09-15

Contributors

author

Le Tuan Bech

• Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

author

Pavelková Drahomíra

• Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

author

Do Thi Thanh Nhan

• Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

author

Ngo Ming Vu

• Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

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