The relationship between corporate governance and accounting conservatism in Vietnam

Abstract

The study aims at investigating the relationship between corporate governance and accounting
conservatism of Vietnamese companies, using collected data of the 69 non-financial companies in period
2015-2021. The Givoly & Hayn (2000) indexis used as proxy for accounting conservatism. The corporate
governance includes board characteristics, ownership structure and audit quality. Our results show that
board independence and ownership concentration have positive effect on ccounting conservatism; while
institutional ownership and board size have negative impact on accounting conservatism. Managerial
ownership, CEO duality and audit quality, on the other hand, are not statistically significant Our research
findings indicate that prioritizing the enhancement of corporate governance quality can address the agency
problem, improve financial reporting quality, and ultimately enhance market efficiency.