5,347
Views
2
CrossRef citations to date
0
Altmetric
FINANCIAL ECONOMICS

Impact of earning management and business strategy on financial distress risk of Vietnamese companies

Article: 2183657 | Received 08 Sep 2022, Accepted 18 Feb 2023, Published online: 24 Feb 2023

References

  • Agarwal, V., & Taffler, R. (2008). Comparing the performance of market-based and accounting based bankruptcy prediction models. Journal of Banking & Finance, 32(8), 1541–21. https://doi.org/10.1016/j.jbankfin.2007.07.014
  • Agrawal, K., & Chatterjee, C. (2015). Earnings Management and Financial Distress: Evidence from India. Global Business Review, 16(5), 140S–154S. https://doi.org/10.1177/0972150915601928
  • Agustia, D., Muhammad, N. P. A., & Permatasari, Y. (2020). Earnings management, business strategy, and bankruptcy risk: Evidence from Indonesia. Heliyon, 6(2), e03317. https://doi.org/10.1016/j.heliyon.2020.e03317
  • Aharony, J., Lee, C. W. J., & Wong, T. J. (2000). Financial packaging of IPO firms in China. Journal of Accounting Research, 38(1), 103–126. https://doi.org/10.2307/2672924
  • Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance, 23(4), 589–609. https://doi.org/10.2307/2978933
  • Altman, E. I., Iwanicz, M., Laitinen, E., & Suvas, A. (2017). Financial distress prediction in an international context: A review and empirical analysis of Altman’s Z score model. Journal of International Financial Management & Accounting, 28(2), 131–171. https://doi.org/10.1111/jifm.12053
  • Alves, S. (2012). Ownership structure and earnings management: Evidence from Portugal. Australasian Accounting, Business and Finance Journal, 6(1), 57–74. https://ro.uow.edu.au/aabfj/vol6/iss1/12/
  • Anh, H. N., & Chi, T. D. (2022). Earnings management and accounting performance of new firms listings: Evidence from the Vietnamese stock market. Cogent Business & Management, 9, 1. https://doi.org/10.1080/23311975.2022.2060163
  • Bharath, S. T., & Shumway, T. (2008). Forecasting default with the Merton distance to default model. Review of Financial Studies, 21(3), 1339–1369. https://doi.org/10.1093/rfs/hhn044
  • Bisogno, M., & DeLuca, R. (2015). Financial Distress and Earnings Manipulation: Evidence from Italian SMEs. Journal of Accounting and Finance, 4, 042–051. https://ssrn.com/abstract=2596295
  • Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of Political Economy, 81(3), 637–654. https://doi.org/10.1086/260062
  • Boubaker, S., Cellier, A., Manita, R., & Saeed, A. (2020). Does corporate social responsibility reduce financial distress risk? Economic Modelling, 91, 835–851. https://doi.org/10.1016/j.econmod.2020.05.012
  • Bryan, D., Dinesh, F. G., & Tripathy, A. (2013). Bankruptcy risk, productivity and firm strategy. Review of Accounting and Finance, 12(4), 309–326. https://doi.org/10.1108/RAF-06-2012-0052
  • Campbell, J. Y., Hilscher, J., & Szilagyi, J. (2008). In search of distress risk. Journal of Finance, 63(6), 2899–2939. https://doi.org/10.1111/j.1540-6261.2008.01416.x
  • Chen, Y., Chen, C., & Huang, S. (2010). An appraisal of financially distressed companies’ earnings management: Evidence from listed companies in China. Pacific Accounting Review, 22(1), 22–41. https://doi.org/10.1108/01140581011034209
  • Chen, Y., Eshleman, J. D., & Soileau, J. S. (2017). Business strategy and auditor reporting. Auditing: A Journal of Practice & Theory, 36(2), 63–86. https://doi.org/10.2308/ajpt-51574
  • Chen, G. Z., & Keung, E. C. (2019). The impact of business strategy on insider trading profitability. Pacific-Basin Finance Journal, 55, 270–282. https://doi.org/10.1016/j.pacfin.2019.04.007
  • Chhillar, P., Ramana, V., & David, M. (2022). Role of earnings management and capital structure in signalling early stage of financial distress: A firm life cycle perspective. Cogent Economics & Finance, 10(1), 1. https://doi.org/10.1080/23322039.2022.2106634
  • David, J. S., Hwang, Y., Pei, B. K., & Reneau, J. H. (2002). The Performance Effects of Congruence between Product Competitive Strategies and Purchasing Management Design. Management Science, 48(7), 866–885. https://doi.org/10.1287/mnsc.48.7.866.2819
  • Debdas, R., Chanchal, C., & Ananya, P. (2021). Financial Distress, the Severity of Financial Distress and Direction of Earnings Management: Evidences from Indian Economy. FIIB Business Review, 1(2), 11–23. https://doi.org/10.1177/23197145211039351
  • Duong, L., & Evans, J. (2016). Gender differences in compensation and earning management: Evidence from Australian CFOs. Pacific-Basin Finance Journal, 40, 17–35. https://doi.org/10.1016/j.pacfin.2016.07.004
  • Fama, E. F., & MacBeth, J. D. (1973). Risk, return, and equilibrium: Empirical tests. Journal of Political Economy, 81(3), 607–636. https://doi.org/10.1086/260061
  • Ghosh, S. (2011). Firm ownership type, earnings management and auditor relationships: Evidence from India. Managerial Auditing Journal, 26(4), 350–369. https://doi.org/10.1108/02686901111124666
  • Grabiński, K., & Wójtowicz, P. (2022). The impact of catholic religion on earnings management: A case of Poland. Journal of International Financial Management and Accounting, 33(1), 18–56. https://doi.org/10.1111/jifm.12141
  • Griffin, J. M., & Lemmon, M. L. (2002). Book-to-market equity, distress risk, and stock returns. Journal of Finance, 57(5), 2317–2336. https://doi.org/10.1111/1540-6261.00497
  • Habib, A., Uddin, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155–180. https://doi.org/10.1108/03074351311294007
  • Hambrick, D. C. (1983). High profit strategies in mature capital goods industries: A contingency approach. Academy of Management Journal, 26(4), 687–707. https://doi.org/10.5465/255916
  • Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature and Its Implications for Standard Setting. Accounting Horizons, 13(4), 365–383. https://doi.org/10.2308/acch.1999.13.4.365
  • Hsiao, F., Szu, H. L., & Ai, C. H. (2010). Earnings management, corporate governance, and auditor’s opinions: A financial distress prediction model. Investment Management and Financial Innovations, 7, 3.
  • Kothari, S., Leone, A., & Wasley, C. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. https://doi.org/10.1016/j.jacceco.2004.11.002
  • Lara, G., Garcìa, O., & Neophytou, E. (2009). Earnings quality in ex‐post failed firms. Accounting and Business Research, 39(2), 119–138. https://doi.org/10.1080/00014788.2009.9663353
  • Lisboa, I. (2017). Impact of financial crisis and family control on earning management of Portuguese listed firms. European Journal of Family Business, 6(2), 118–131. http://dx.doi.org/10.1016/j.ejfb.2017.06.002
  • Lizares, R. M., & Bautista, C. C. (2020). Corporate financial distress: The case of publicly listed firms in an emerging market economy. Journal of International Financial Management & Accounting, 32(1), 5–20. https://doi.org/10.1111/jifm.12122
  • McVay, S. (2006). Earnings management using classification shifting: An examination of core earnings and special items. The Accounting Review, 81(3), 501–531. https://doi.org/10.2308/accr.2006.81.3.501
  • Megginson, W. L., Meles, A., Sampagnaro, G., & Verdoliva, V. (2016). Financial distress risk in initial public offerings: How much do venture capitalists matter? Journal of Corporate Finance, 59, 10–30. https://doi.org/10.1016/j.jcorpfin.2016.09.007
  • Muljono, D., & Suk, K. (2018). Impacts Of Financial Distress On Real And Accrual Earnings Management. Jurnal Akuntansi, 22(2), 222–238. https://doi.org/10.24912/ja.v22i2.349
  • Muñoz, I. N., Laitinen, E. K., Camacho, M. D. M., & Pascual, E. D. (2020). Does audit report information improve financial distress prediction over Altman’s traditional Z-Score model? Journal of International Financial Management and Accounting, 31(1),65–97. https://doi.org/10.1111/jifm.12110
  • Newey, W. K., & West, K. D. (1987). A Simple, Positive Semi-Definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix. Econometrica, 55(3), 703–708. https://doi.org/10.2307/1913610
  • Nguyen, A. H., & Duong, C. T. (2021). Earnings management and new listings: Evidence from Vietnam. Asian Academy of Management Journal, 26(2), 27–51. https://doi.org/10.21315/aamj2021.26.2.2
  • Ohlson, J. A. (1980). Financial ratios and the probabilistic prediction of bankruptcy. Journal of Accounting Research, 18(1), 109–131. https://doi.org/10.2307/2490395
  • Panigrahi, A. (2019). Validity of Altman’s ‘Z’ Score Model in Predicting Financial Distress of Pharmaceutical Companies. NMIMS Journal of Economics and Public Policy, 4(1), 65–73. https://ssrn.com/abstract=3326312
  • Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, 22(1), 435–480. https://doi.org/10.1093/rfs/hhn053
  • Porter, M. E. (1997). Competitive strategy. Measuring Business Excellence, 1(2), 12–17. https://doi.org/10.1108/eb025476
  • Richardson, G., Lanis, R., & Taylor, G. (2015). Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis. Journal of Banking & Finance, 52, 112–129. https://doi.org/10.1016/j.jbankfin.2014.11.013
  • Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. https://doi.org/10.1016/j.jacceco.2006.01.002
  • Salehi, M., & Arianpoor, A. (2022). The relationship between business strategy and management entrenchment. International Journal of Productivity and Performance Management, 71(5), 1625–1641. https://doi.org/10.1108/IJPPM-06-2020-0288
  • Saona, P., Muro, L., & Alvarado, M. (2020). How do the ownership structure and board of directors’ features impact earnings management? The Spanish case. Journal of International Financial Management & Accounting, 31(1), 98–133. https://doi.org/10.1111/jifm.12114
  • Selling, T. I., & Stickney, C. P. (1989). The effects of business environment and strategy on a firm’s rate of return on assets. Financial Analysts Journal, 45(1), 43–52. https://doi.org/10.2469/faj.v45.n1.43
  • Shumway, T. (2001). Forecasting bankruptcy more accurately: A simple hazard model. The Journal of Business, 74(1), 101–124. https://doi.org/10.1086/209665
  • Tamanna, D., & Mahdi, S. (2021). Business strategy, intellectual capital, firm performance, and bankruptcy risk: Evidence from Oman’s non-financial sector companies. Asian Review of Accounting, 29(3), 474–504. https://doi.org/10.1108/ARA-01-2021-0008
  • Tian, Q., & Peterson, D. K. (2016). The effects of ethical pressure and power distance orientation on unethical pro-organizational behavior: The case of earnings management. Business Ethics: A European Review, 25(2), 159–171. https://doi.org/10.1111/beer.12109
  • Ting, W., Yen, S. H., & Huang, S. S. (2009). Top Management Compensation, Earnings Management and Default Risk: Insights from the Chinese Stock Market. The International Journal of Business and Finance Research, 3(1), 31–46. https://ssrn.com/abstract=1555228
  • Tykvová, T., & Mariela, B. (2012). Do private equity owners increase risk of financial distress and bankruptcy? Journal of Corporate Finance, 18(1), 138–150. https://doi.org/10.1016/j.jcorpfin.2011.11.004
  • Verwijmeren, P., & Derwall, J. (2010). Employee well-being, firm leverage, and bankruptcy risk. Journal of Banking & Finance, 34(5), 956–964. https://doi.org/10.1016/j.jbankfin.2009.10.006
  • Wu, P., Gao, L., Gu, T., & Yuanhui Li,Prof. John Ferguson, P. (2015). Business strategy, market competition and earnings management: Evidence from China. Chinese Management Studies, 9(3), 401–424. https://doi.org/10.1108/CMS-12-2014-0225
  • Xu, G., & Ji, X. (2016). Earnings management by top Chinese listed firms in response to the global financial crisis. International Journal of Accounting and Information Management, 24(3), 226–251. https://doi.org/10.1108/IJAIM-06-2015-0034
  • Zang, A. Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. American Accounting Association, 87(2), 675–703. https://doi.org/10.2308/accr-10196
  • Zmijewski, M. E. (1984). Methodological Issues Related to the Estimation of Financial Distress Prediction Models. Journal of Accounting Research, 22, 59–82. https://doi.org/10.2307/2490859