Corporate Governance, Earning Management, And Firm Value In Vietnamese Nonfinancial Firms Evidence From Companies Listed In Ho Chi Minh Stock Exchange (Hose)

Abstract

This research delves into the factors that affect business value in nonfinancial Vietnamese firms, with a particular focus on the impacts of earnings management and the role of corporate governance. The measure of company value employed is Tobin's Q, and earnings management is indicated by discretionary accruals, which are estimated using the Jones model. The study specifically examines manufacturing companies listed on the Ho Chi Minh Stock Exchange (HOSE) over the period from 2018 to 2023. One key aspect of the research is how the proportion of independent directors on the board influences this relationship. Advanced statistical methods are used to analyze the connections and interactions between corporate governance, earnings management, and company value. The results reveal that having independent directors on the board reduces the significant effect of earnings management on the value of the company. This study has important implications for regulatory policies and corporate governance practices in emerging economies, but with certain limitations. The study's goal is to educate policymakers, investors, and stakeholders on the vital role governance systems play in preserving company value and fostering ethical corporate behavior.