Title: Income smoothing in Vietnamese listed firms: do related party transactions make a difference?

Authors: Tran Trung Kien

Addresses: School of Public Finance, College of Economics, Law, and Government, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam

Abstract: This study examines the relationship between related party transactions (RPT) and income smoothing (ISM) behaviour by using a sample of Vietnamese-listed firms in the period of 2015-2018. The author predicts a positive relationship between RPT and ISM because RPT can be considered a tool to apply earnings manipulation measured through ISM. By using the ordinary least square (OLS) regression method, the positive relationship between RPT and ISM is found. Besides, several robustness tests are conducted, and the research findings are confirmed. This study will help the regulator better understand how RPT relates to the stock market and what regulatory changes can be made to utilise the benefits of RPT in developing nations.

Keywords: emerging market; income smoothing; related party transactions.

DOI: 10.1504/IJCG.2025.148921

International Journal of Corporate Governance, 2025 Vol.15 No.3, pp.260 - 288

Received: 01 Feb 2024
Accepted: 19 Aug 2024
Published online: 02 Oct 2025 *

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