| dc.description.abstract | The dispersed ownership in modern corporations has created the issue of
misalignment in management and shareholders’ interests. As different owners have
posed different points of view, and simultaneously, different approaches toward how to
manage the company, this research explores the degree of influence of the concentration
of different types of owners in corporate environments: management, the state and
foreign ownership, on firm’s profit management. The sample covers 2019 firms listed
on Ho Chi Minh stock exchange over the six-year period from 2016 to 2021. The study
finds that firms with more foreign investors holding at least 5% of total common equity
constrain the degree of firm’s earnings management. Additionally, the State and the
board of directors with the equivalent amount of ownership in the corporations are also
capable of limiting manipulation when the capital structure of the firm is highly
leveraged. The results may provide additional knowledge in the current field of earnings
manipulation and support validating hypothesized literature, and further improve the
conflicts of interest existing in corporations. | en_US |
