| dc.description.abstract | This study aims to investigate the effect of real earning management in the context of
Vietnamese stock market. By collecting data of 426 non-financial firms listed on Ho
Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX), the baseline
result show there is a significant and negative relationship between real earning
management and stock price informativeness. This finding supports the idea that real
earning management could conceal real information related to firm fundamental values
and harm the prediction ability of current stock price, thus leading to low stock price
informativeness. Furthermore, I also add three different channels such as firm size,
information asymmetry, global financial crisis by dividing full sample into subsamples
to test the effect of real earning management on stock price informativeness. The results
show that the negative association between real earning management and stock price
informativeness is more pronounced for firms with small size and high level of
information asymmetry, which is consistent with studies consider real earning
management is likely detected among small firms or firms with high information
asymmetry. During global financial crisis, there is no significant relationship between
real earning management and stock price informativeness in the Vietnamese
background. The prudent attitude of market investors and tightening policy from
government may constrain managers’ behavior of real earning manipulation. | en_US |
