Effect Of Earning Quality On Corporate Performance: Evidence In Companies Listed On Ho Chi Minh City

Abstract

Some Vietnamese firms are still not concentrating on financial statement information, therefore, it reduced quality earning for firms, and reduced corporate performance in Vietnam. Therefore, the research objective for this study is that it determines the effect of low earning quality on high corporate performance based on ratios of EBIT/asset for profitability ratio, and Tobin Q as the earning based on price market valuation. Based on the conditional collection samples, there are exactly 795 observations or 159 firms in HOSE from 2016 to 2020, and the panel regression analyst is conducted for this evidence to provide more information for outcomes for this evidence. According to Feasible Generalized Least square (FGLS) model, low earning quality has association with high corporate performance based on EBIT/Asset. However, low earning quality does have an association on high Tobin Q.