The impact of short-term debt on accruals-based earnings management – evidence from Vietnam

Figures & data

Table 1. Descriptive statistics

Variable	Obs	Mean	Std. Dev.	Min	Max
aem	4,527	0.000	0.136	−1.487	1.291
shortdebtmat	3,864	0.722	0.321	0.000	1.000
size	4,527	26.945	1.486	23.330	32.200
lev	4,527	0.235	0.195	0.000	0.883
mtb	4,146	0.906	0.933	−9.850	17.060
posprofit	4,527	0.952	0.215	0.000	1.000
roa	4,502	0.073	0.085	−0.790	0.840
boardsize	4,360	5.466	1.099	2.000	11.000
cash	4,527	0.146	0.153	0.000	0.974

Source: Authors’ calculation from research data

Table 2. Correlation matrix

	aem	sdm	mtb	size	lev	roa	posprofit	cash	boardsize
aem	1.0000
sdm	−0.0206	1.0000
mtb	−0.0515	−0.0412	1.0000
size	0.0774	−0.2519	0.1938	1.0000
lev	0.0118	−0.1699	−0.0906	0.4144	1.0000
roa	−0.1262	−0.0201	0.3737	−0.0492	−0.3543	1.0000
posprofit	−0.0725	−0.0032	0.0893	0.0124	−0.0883	0.3796	1.0000
cash	0.0137	0.0246	0.1679	−0.0816	−0.4046	0.4119	0.0976	1.0000
boardsize	0.0149	−0.0834	0.1276	0.2785	0.065	0.0406	−0.0332	0.0285	1.0000

Source: Authors’ calculation from research data. Sdm is shortdebtmat.

Table 3. Regressions on the determinants of earnings management

aem	Coef.	Std. Err.	t	P > t
L1.aem	0.374	0.011	33.720	0.000
shortdebtmat	−0.082	0.028	−2.930	0.004
shortdebtmat2	0.115	0.022	5.270	0.000
size	0.000	0.001	0.230	0.816
lev	−0.023	0.012	−1.910	0.056
mtb	0.024	0.002	11.470	0.000
roa	−0.220	0.025	−8.810	0.000
posprofit	−0.044	0.008	−5.780	0.000
cash	0.021	0.013	1.580	0.114
boardsize	−0.011	0.002	−6.010	0.000
_cons	0.126	0.032	3.920	0.000
Number of obs	1658
AR(2) test (p val)	0.163
Hansen test (p val)	0.117

Source: Authors’ calculation from research data

Table 4. Regression for the model (1) with additional interaction variables

	low50	low30	hi70
L1.aem	0.325***	0.313***	0.31***
	(0.011)	(0.010)	(0.010)
shortdebtmat	−0.031	−0.097***	−0.161***
	(0.031)	(0.028)	(0.025)
shortdebtmat2	0.046*	0.097***	0.168***
	(0.027)	(0.023)	(0.020)
mtb	0.015***	0.025***	0.017***
	(0.003)	(0.002)	(0.002)
shortdebtmat*dummyMTB	−0.176***	−0.084***	0.124***
	(0.026)	(0.029)	(0.029)
shortdebtmat2*dummyMTB	0.165***	0.100***	−0.102***
	(0.028)	(0.030)	(0.032)
size	0.000	0.001	0.001
	(0.001)	(0.001)	(0.001)
lev	−0.037***	−0.037***	−0.041***
	(0.010)	(0.011)	(0.011)
roa	−0.154***	−0.124***	−0.179***
	(0.022)	(0.018)	(0.020)
posprofit	−0.059***	−0.062***	−0.057***
	(0.006)	(0.006)	(0.006)
cash	0.055***	0.075***	0.051***
	(0.012)	(0.013)	(0.012)
boardsize	−0.012***	−0.012***	−0.013***
	(0.002)	(0.002)	(0.002)
_cons	0.193***	0.179***	0.178***
	(0.029)	(0.029)	(0.027)
Number of obs	1658	1658	1658
AR(2) test (p val)	0.196	0.187	0.246
Hansen test (p val)	0.196	0.13	0.108

Source: Authors’ calculation from research data. *, **, *** indicate significance at 10%, 5% and 1%, respectively.