Does foreign ownership impact accounting conservatism adoption in Vietnam?

Le, Tuan Bach; Pavelková, Drahomíra; Do, Thi Thanh Nhan; Ngo, Minh Vu

dc.title	Does foreign ownership impact accounting conservatism adoption in Vietnam?	en
dc.contributor.author	Le, Tuan Bach
dc.contributor.author	Pavelková, Drahomíra
dc.contributor.author	Do, Thi Thanh Nhan
dc.contributor.author	Ngo, Minh Vu
dc.relation.ispartof	Business and Economic Horizons
dc.identifier.issn	1804-1205 Scopus Sources, Sherpa/RoMEO, JCR
dc.date.issued	2017
utb.relation.volume	13
utb.relation.issue	3
dc.citation.spage	287
dc.citation.epage	294
dc.type	article
dc.language.iso	en
dc.publisher	Prague Development Center
dc.identifier.doi	10.15208/beh.2017.21
dc.subject	accounting	en
dc.subject	accounting information	en
dc.subject	financial reporting	en
dc.description.abstract	This study investigates the effects of foreign ownership on accounting conservatism adoption in Vietnam. Although foreign ownership is found to have a positive relationship with accounting conservatism in Korea (An, 2015), there is still no general agreement on it. In this regard, the purpose of this study is to shed more light on the association between foreign ownership and accounting conservatism. Using data from Vietnamese firms listed on stock exchanges, the study finds that in contrast to the findings of An, foreign ownership is negatively associated with accounting conservatism. This result supports the transient hypothesis of foreign ownership, indicating that foreign investors with the low level of ownership do not have significant incentives to oversee managers, thus not influencing financial reporting quality. © 2017 Prague Development Center.	en
utb.faculty	Faculty of Management and Economics
dc.identifier.uri	http://hdl.handle.net/10563/1007588
utb.identifier.obdid	43877356
utb.identifier.scopus	2-s2.0-85033212505
utb.identifier.wok	000441771900001
utb.source	j-scopus
dc.date.accessioned	2018-01-15T16:31:31Z
dc.date.available	2018-01-15T16:31:31Z
dc.description.sponsorship	Internal Grant Agency of FaME; TBU - The Relationship between Concentration Ownership and Financial Reporting Quality [IGA/FaME/2017/004]
dc.rights	Attribution 4.0 International
dc.rights.uri	https://creativecommons.org/licenses/by/4.0/
dc.rights.access	openAccess
utb.contributor.internalauthor	Le, Tuan Bach
utb.contributor.internalauthor	Pavelková, Drahomíra
utb.contributor.internalauthor	Do, Thi Thanh Nhan
utb.contributor.internalauthor	Ngo, Minh Vu
utb.fulltext.affiliation	Tuan Bach Le, Drahomíra Pavelková, Thi Thanh Nhan Do, Minh Vu Ngo Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic corresponding e-mail: bachstep1008[at]gmail(dot)com address: J. Babáka 1861/3, 616 00 Brno, Czech Republic
utb.fulltext.dates	-
utb.fulltext.references	An, Y. (2015). Does foreign ownership increase financial reporting quality? Asian Academy of Management Journal, 20(2), 81-101. Bach, L. T., & Hang, N. T. (2016). Accounting information quality in emerging markets: Conservatism in financial reporting of Vietnamese firms in the context of international economic integration. International Journal of Economics and Financial Issues, 6(6Special Issue), 88-93. Bach, L. T., & Hang, N. T. (2016). The impact of financial statement disclosure on conservatism in financial reporting: Evidence from Vietnam. International Journal of Economics and Financial Issues, 6(6Special Issue), 158-161. Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(2), 27-46. Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37. Bliss, J. (1924). Management through Accounts. New York: The Ronald Press Company. Christie, A. A. (1987). On cross-sectional analysis in accounting research. Journal of Accounting and Economics, 9(3), 231-258. Financial Accounting Standards Board (1980). Statement of Financial Accounting Concepts No. 2: Qualitative Characteristics of Accounting Information. Norwalk: FASB. Francis, B., Hasan, I., & Wu, Q. (2013). The benefits of conservative accounting to shareholders: Evidence from the financial crisis. Accounting Horizons, 27(2), 319-346. International Accounting Standards Board (1989). Framework for the preparation and presentation of financial statements. London: International Accounting Standards Committee Foundation. KPMG (2016). Investing in Vietnam. Vietnam: KPMG. Retrieved Jund 23, 2017, from https://home.kpmg.com/content/dam/kpmg/vn/pdf/publication/2016/vn-2016-september-investing_in_vietnam.pdf. Le, T. P. V., & Tannous, K. (2016). Ownership structure and capital structure: A study of Vietnamese listed firms. Australian Economic Papers, 55(4), 319-344. Ruch, G. W., & Taylor, G. (2015). Accounting conservatism: A review of the literature. Journal of Accounting Literature, 34, 17-38. Vo, X. V. (2016). Foreign investors and corporate risk taking behavior in an emerging market. Finance Research Letters, 18, 273-277. Vo, X. V. (2017). Foreign ownership and corporate cash holdings in emerging markets. International Review of Finance. http://dx.doi:10.1111/irfi.12130. Watts, R. L. (2003). Conservatism in accounting part I: Explanations and implications. Accounting Horizons, 17(3), 207-221. White, H. (1980). Heteroskedasticity consistent covariance matrix estimator and a direct test of heteroskedasticity. Econometrica, 48(4), 817-838. Xie, Y. (2015). Confusion over accounting conservatism: A critical review. Australian Accounting Review, 25(2), 204-216. http://dx.doi:10.1111/auar.12061.
utb.fulltext.sponsorship	The authors would like to thank the Internal Grant Agency of FaME for providing financial support to carry out this research. Funding was extended through: TBU No. IGA/FaME/2017/004 - The Relationship between Concentration Ownership and Financial Reporting Quality.
utb.wos.affiliation	[Tuan Bach Le; Pavelkova, Drahomira; Thi Thanh Nhan Do; Minh Vu Ngo] Tomas Bata Univ Zlin, Fac Management & Econ, Zlin, Czech Republic
utb.scopus.affiliation	Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
utb.fulltext.projects	IGA/FaME/2017/004