THE IMPACT OF FIRM CHARACTERISTICS ON EARNINGS MANAGEMENT: THE CASE OF MANUFACTURING ENTERPRISES LISTED ON THE VIETNAMESE STOCK MARKET

Abstract

This paper studies the influence of factors of business characteristics on earnings management of manufacturing enterprises listed on the Vietnamese stock market. Research data was collected from 373 manufacturing enterprises listed on the Vietnam stock market in the period 2012-2022. The author uses the Modified Jones model (1995) of Dechow et al and the model of Kothari et al (2005) to measure earnings management. Research results show that financial leverage and operating cash flow have a negative influence while growth opportunities and profitability have a positive influence on earnings management. In addition, company size as a control variable also has a positive influence on earnings management, but the direction of influence is different between the two models.