Improving corporate governance to enhance earnings quality: Empirical evidence from the emerging market of Vietnam

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This study aims to provide more evidence on the earnings quality of companies listed in emerging markets by examining how corporate governance factors affect earnings quality in Vietnam. Using panel data analysis, the research analyzed data from 216 firms listed on Vietnam’s two main stock exchanges, the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), between 2017 and 2021. The findings identified six key variables with a significant impact on earnings quality: board size, board activity, net cash flow from operations, return on assets, working capital, and the COVID-19 pandemic. These results highlight the critical role of corporate governance in improving the earnings quality of listed firms. Therefore, this study offers valuable insights for securities analysts, regulatory bodies, and users of accounting information to better understand the relationship between corporate governance and earnings quality in the Vietnamese market.