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Volume 13
Issue 3
Online publication date 2017-09-10
Title Does foreign ownership impact accounting conservatism adoption in Vietnam
Author Tuan Bach Le, Drahomira Pavelkova, Thi Thanh Nhan Do, Minh Vu Ngo
Abstract
This study investigates the effects of foreign ownership on accounting conservatism adoption in Vietnam. Although foreign ownership is found to have a positive relationship with accounting conservatism in Korea (An, 2015), there is still no general agreement on it. In this regard, the purpose of this study is to shed more light on the association between foreign ownership and accounting conservatism. Using data from Vietnamese firms listed on stock exchanges, the study finds that in contrast to the findings of An, foreign ownership is negatively associated with accounting conservatism. This result supports the transient hypothesis of foreign ownership, indicating that foreign investors with the low level of ownership do not have significant incentives to oversee managers, thus not influencing financial reporting quality.
Citation
References
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Keywords Accounting, accounting information, financial reporting
DOI http://dx.doi.org/10.15208/beh.2017.21
Pages 287-294
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