Title: Corporate governance and financial misstatement: evidence from Vietnam

Authors: Kien Cao; Thao Tran; Thuy Nguyen

Addresses: Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi, Vietnam ' Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi, Vietnam ' Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi, Vietnam

Abstract: This study examines the influence of corporate governance on the likelihood of financial misstatement in Vietnam. Given the unique setting in Vietnam, financial misstatement information is manually collected from income statement figures in the reporting period between the pre-audit/pre-review date and post-audit/post-review date. The results indicate that, among various corporate governance variables, only ownership structure influences the likelihood of financial misstatement in Vietnam. Specifically, the state ownership has a positive impact and the foreign ownership has a negative impact on the likelihood of financial misstatement. The results indicate that, in a weak corporate governance structure, the participation of foreign investors has a huge impact in controlling the correctness of financial statements.

Keywords: corporate governance; ownership structure; financial misstatement; Vietnam.

DOI: 10.1504/IJBG.2021.113274

International Journal of Business and Globalisation, 2021 Vol.27 No.3, pp.385 - 402

Received: 12 Jun 2018
Accepted: 14 Oct 2018

Published online: 15 Feb 2021 *

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