The Impact of Earnings Quality on Firm Value: The Case of Vietnam

Abstract

The study aims to investigate the impact level of earnings quality on firm value. The study has used data with 3,910 observations at listed firms on Vietnam Stock Exchange for the period from 2010 to 2018, and GLS regression analysis is employed in this research. Earnings quality is measured in the aspects of earnings management, earnings persistence, and timeliness of profitability. This study also considers a number of controlled variables that positively influence the firm's value such as firm size, fixed asset investment rate and dividend payout ratio. The results show that earnings quality is positively associated with firm value with having statistical significance. In contrast, some determinants negatively influence firm value such as financial leverage, ratio of market value to book value, and revenue growth. Determinants of firm size, the rate of investment in fixed assets, the rate of dividend payment positively affect the firm value. In contrast, determinants of financial leverage, revenue growth rate and market value to book value ratio are inversely related to firm value according to economic value, Tobin"s Q or Price. Based on the findings, some recommendations are proposed for investors, management and policy makers as well in the context of emerging countries including Vietnam.

Does Earnings Quality Affect Companies’ Performance? New Evidence from the Jordanian Market

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Ownership Structure, Earnings Manipulation, and Organizational Performance: The Case of Jordanian Insurance Organizations

“…In particular, the empirical literature (e.g., Al-Mousawi & Al-Thuneibat, 2011;Al-Khabash & Al-Thuneibat, 2009) has documented that most Jordanian organizations have practiced earnings manipulation in their statements. As the consequence of such a practice, the value of an organization would decrease, along with its transactions, and its reputation (Dang et al, 2020;Huynh & Nguyen, 2019). Furthermore, this study adds to the literature by showing the explanatory power of ownership structure in developing markets.…”

The Impacts of Earnings Quality on Dividend Policy of Listed Enterprises in Vietnam

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