Title: Board characteristics, assurance auditing services role and earning management: evidence from Vietnam

Authors: Thi-Kim-Tuyen Nguyen; Pham Tuan Anh

Addresses: National Chung Cheng University, Taiwan No. 168, Sec. 1, University Rd., Minhsiung, Chiayi 621301, Taiwan; Ton Duc Thang University, 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City, Vietnam ' Faculty of Accounting – Finance – Banking, Binh Duong Economics and Technology University, Vietnam

Abstract: The study examines the effect of corporate governance and assurance auditing services on earnings management in the case of Vietnam. We investigate that higher earnings manipulation is associated with higher board meeting frequencies and CEO/board chair position separation. Moreover, the qualified assurance auditing service insignificantly negatively affects earnings management. This finding suggests that pre-eminent perspectives of corporate governance systems from developed economies may not be a good fit for emerging markets like Vietnam. Generally, our paper emphasises the importance of the Vietnam policymaker's role in building effective monitoring mechanisms in the capital market by disciplining and supervising listed companies' current corporate governance applications. In addition, it is essential that the quality of assurance auditing services need to be enhanced to improve the transparency level in the capital market.

Keywords: earning management; board meeting; auditing services; CEO duality; Vietnam.

DOI: 10.1504/IJMFA.2023.129843

International Journal of Managerial and Financial Accounting, 2023 Vol.15 No.2, pp.211 - 230

Received: 30 Jul 2021
Accepted: 01 Apr 2022

Published online: 31 Mar 2023 *

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