Abstract
Prior studies show that paying dividends limits private control benefits available to managers, which may restrict agency problems and the pos sibilities of managers manipulating earnings. This paper examines whether dividend policy has an impact on earnings management on a sample of listed firms on the Ho Chi Minh Stock Exchange in the period from 2012 to 2022. We use different proxies of earnings management, including accrual based and real earnings management. The results show that dividend pay ing firms have a lower level of earnings management than non-dividend paying firms. Besides, book-to-market equity ratio, firm size, leverage, re turn on assets, number of years listed and free cash flow also have impacts on earnings management. Our results are consistent when using different estimation methods, including OLS, fixed effects, random effects, GLS and GMM regressions with STATA 14. We offer some solutions for the govern ment, the firms and investors to better ensure and understand the quality of firms’ financial reporting.
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