Does foreign ownership impact accounting conservatism adoption in Vietnam

Bach, Le Tuan; Pavelková, Drahomíra; Nhan, Do Thi Thanh; Ngo, Vu Minh

doi:10.15208/beh.2017.21

Cited by 6 publications

(5 citation statements)

References 12 publications

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“…They argue that foreign investors with low levels of ownership do not have enough incentives to oversee managers of Vietnamese firms, hence cannot influence the reporting quality. Our findings are different from these of Le et al (2017). State-controlled firms with low levels of foreign ownership adopt less accounting conservatism than non-SOEs also with a low level of foreign ownership.…”

Section: Introductioncontrasting

confidence: 99%

“…Limited research examines accounting conservatism in Vietnamese firms. Le et al (2017) document that foreign ownership is negatively associated with accounting conservatism in Vietnam. They argue that foreign investors with low levels of ownership do not have enough incentives to oversee managers of Vietnamese firms, hence cannot influence the reporting quality.…”

Section: Introductionmentioning

confidence: 99%

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The effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam

Moore

2021

PAR

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Purpose The purpose of this paper is to examine the joint effects of state ownership and tax rate cuts on accounting conservatism, considering the different levels of foreign ownership in the context of Vietnam. Design/methodology/approach The paper uses ordinary least squares regressions and a data set of 405 firms covering the period 2007 to 2019. The manuscript uses three measures of accounting conservatism: Basu’s 1997 timeliness of earnings, Basu’s 1997 earnings persistence and the book-to-market ratio. Findings State-owned enterprises (SOEs) adopt less accounting conservatism than non-SOEs; however, the result is only robust in firms with foreign ownership being lower than the foreign ownership median. Firms increase accounting conservatism in the year immediately prior to the year that the tax rate cuts become effective. An SOE possesses an unusual conflict both as a taxpayer and in having its controlling interest held by the government, which is both a tax creator and a tax collector. Interestingly, the increase in accounting conservatism prior to the year of the tax rate cuts is more pronounced for non-SOEs than SOEs. Practical implications This research is beneficial to investors and policymakers where the government is both the taxpayer and tax collector and in emerging markets where foreign investment is local firms’ important financing. Originality/value To the best knowledge, this study is the first in examining the joint effects of state control and tax rate cuts on accounting conservatism.

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Section: Introductioncontrasting

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam

Moore

2021

PAR

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“…Chủ đề nghiên cứu "mức độ thận trọng kế toán" đã được một số tác giả thực hiện [2][3][4][5][6][7][8][9] . Tại Việt Nam, nghiên cứu mức độ thận trọng kế toán cũng được một số tác giả thực hiện [10][11][12] nghiên cứu tác động của đòn bẩy tài chính đến mức độ thận trọng kế toán của doanh nghiệp khi có sự điều tiết của sở hữu nhà nước. Trong khi các nghiên cứu trước đây tại Việt Nam thường tập trung vào phân tích tác động của đòn bẩy tài chính 10 , sở hữu nước ngoài 11 , sở hữu nhà nước 12 ; Thứ hai, nghiên cứu có ý nghĩa quan trọng đối với nền kinh tế Việt Nam đang trong giai đoạn chuyển đổi từ sở hữu nhà nước sang cơ chế thị trường, làm cơ sở để Chính phủ đưa ra các chính sách thúc đẩy nâng cao chất lượng thông tin kế toán.…”

Section: Giới Thiệuunclassified

The role of state ownership in regulating the impact of financial leverage on the application of the conservatism principle in accounting

Đỗ

2022

Sci. Tech.Dev. J. - Eco. Law Manag.

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The aim of this paper is to explore the role of state ownership in regulating the impact of financial leverage on the application of the conservatism principle in accounting of non-financial listed enterprises in Vietnam from 2016 to 2020. The Poold-OLS, fixed-effects model, and random-effects model methods were employed in the study. The finding shows that state-ownership and financial leverage have a positive effect on the level of accounting conservatism. Which means, the higher share of state ownership, the stronger positive impact on the accounting conservatism of the non-financial listed enterprises in Vietnam. Moreover, financial leverage has a negative impact on the level of accounting conservatism with the state ownership as a moderating variable. This reveals that the state ownership can limit the positive impact of using the financial leverage on the accounting conservatism of the enterprises. On one hand, it is because the state owned enterprises have to perform socio-economic goals of the country; on the other hand, they are sponsored by the government on guaranteed loans, therefore it tends to reduce the positive effect of the financial leverage on the accounting conservatism of the non-financial listed enterprises. Accordingly, the research results recommend that the government should design policies to accelerate the equitization of state-owned enterprises for improving the quality of accounting information.

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“…Kepemilikan saham yang dimiliki oleh asing memiliki hubungan positif dengan konservatif, hal tersebut dikemukakan oleh Lee (2008) yang menyatakan bahwa kepemilikan asing mampu mengendalikan kebijakan manajemen karena memiliki kemampuan yang baik, sehingga berdampak pada penerapan konservatisme akuntansi. Berbeda halnya dengan penelitian yang dilakukan oleh Le et al (2017) yang melakukan penelitian tentang pengaruh kepemilikan asing terhadap konservatisme akuntansi di Vietnam memperlihatkan bahwa kepemilikan asing yang ada di perusahaan Vietnam menunjukkan hubungan yang negatif dengan konservatisme akuntansi. Berdasarkan argumentasi dan hasil riset terdahulu, maka dirumuskanlah hipotesis kedua sebagai berikut:…”

Section: Pengaruh Struktur Kepemilikan Asing Terhadap Konservatisme Aunclassified

Pengaruh Mekanisme Corporate Governance Terhadap Konservatisme Akuntansi Dengan Intensitas Fair Value Sebagai Pemoderasi

Alvino

Sebrina

2020

WRA

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The purpose of this research is to examine the effect of corporate governance mechanisms that are moderated by fair value on the level of accounting conservatism. The corporate governance mechanism consists of an independent commissioner, an institutional ownership structure, a foreign ownership structure and audit quality. Research conducted on manufacturing companies and financial companies listed on the Stock Exchange period 2016-2018, purposive sampling method was used to determine the research sample so that 93 manufacturing companies and 52 financial companies was obtained. Hypothesis testing is done by multiple regression methods. The results showed that the independence of commissioners had a positive effect on the level of accounting conservatism. In manufacturing companies, institutional ownership structure does not affect the level of conservatism, whereas in financial companies, institutional ownership structure influences the level of accounting conservatism. Other corporate governance mechanisms, foreign ownership and audit quality, do not influence the level of accounting conservatism in both manufacturing and financial companies. The intensity of fair value in both sectors of the company has a negative effect, or weakens the relationship of corporate governance mechanisms to the level of accounting conservatism Keywords: Accounting Conservatism; Fair Value; Corporate Governance

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Does foreign ownership impact accounting conservatism adoption in Vietnam

Cited by 6 publications

References 12 publications

The effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam

The effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam

The role of state ownership in regulating the impact of financial leverage on the application of the conservatism principle in accounting

Pengaruh Mekanisme Corporate Governance Terhadap Konservatisme Akuntansi Dengan Intensitas Fair Value Sebagai Pemoderasi

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