THE ROLE OF ACCOUNTING CONSERVATISM IN LIMITING EARNINGS MANAGEMENT: EMPIRICAL EVIDENCE FROM VIETNAM

Abstract

This study examines the role of accounting conservatism in constraining earnings management among non-financial firms listed on Vietnam’s stock exchanges during the period 2017–2023. Using an Ordinary Least Squares (OLS) regression model with data from 150 companies, the results indicate a statistically significant negative relationship between the conservatism index and the level of earnings management. The study contributes to clarifying the role of accounting conservatism in enhancing the quality of financial information, while also offering policy recommendations for regulators, firms, and investors.