| dc.description.abstract | Earnings management has been a topic that is extensively discussed in literature history regarding a variety of aspects having been examined. The aim of this study is to investigate one of those namely the motivational factors that influence earnings management of Vietnam listed firms on Ho Chi Minh stock exchange. The sector of interest is Food and Beverage as it is considered one of the most prosperous sectors in Viet Nam that have dynamic business climate. Under the time span from 2012 to 2016, panel data of 25 firms indicating 75 observations were primarily extracted from audited financial statements of the firms. Financial distress, free cash flow, leverage, liquidity and firm size were illustrated and analyzed in the study as the factors that influence earnings management which is proxied by discretionary accruals. The Modified Kothari-Jones model was employed to analyze this dependent variable. The study applied descriptive analysis and multiple linear regression to arrive at the needed findings. In particular, the study found that financial distress has a positive effect whereas free cash flow presents a negative effect on earnings management practice.
Keywords: earnings management, discretionary accruals, financial distress, free cash flow, leverage. | en_US |
