Abstract
The research examines the impact of leverage on earnings management: a case study of listed manufacturing companies in Viet Nam in the period of 2017-2019. Leverage is measured by the ratio of long-term debt to the total book value of equity. Earnings management is measured by using accrual-based measures (AEM) and real earnings management measures (REM). Data comprises 45 manufacturing companies on Vietnam stock markets (HNX and HOSE) that have increasing or high leverage in the period 2017-2019, forming 135 observations. Multiple regression analysis with panel data is used to estimate the impact of leverage on earnings management. Results research show that firm leverage has a positive effect on earnings management using accrual-based measures (AEM) and has a negative effect on earnings management using real earnings management (REM) measures but with no statistical significance. Results research suggest that leverage changes and leverage levels may have differing impacts on earnings management based on AEM and REM. Additionally, the research finds that firm performance (ROA) is associated with positive earnings management, and firm size (SIZE) is associated with negative earnings management.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Science & Technology Development Journal - Economics - Law and Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
