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Income Smoothing Practices: Evidence from Vietnam Stock Exchange Market

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Proceedings of the 4th International Conference on Research in Management and Technovation (ICRMAT 2023)

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Abstract

The study aims to: (i) provide empirical evidence on income smoothing practice of listed companies in Vietnam Stock Exchange; and (ii) investigate the impacts of firms’ profitability, financial leverage, liquidity, and audit firm size combined with several control variables proxied by listing age, firm size, audit tenure, and board size on income smoothing of Vietnamese listed companies from 2009 to 2021. Using the purposive sampling method, the studied samples are 81 companies making of 1053 observations in total. Data are analyzed using logistic regression with dependent variable which is income smoothing categorized based on the Eckel’s index. The study's findings indicate that while other variables have no effect on income smoothing practices, financial leverage, audit firm size, and company size have a substantial impact. The findings of this study also suggest that income smoothing is very viable in Vietnam, similar to that in Japan but considerably less common than in Singapore and China.

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Author information

Authors and Affiliations

  1. Thuongmai University, Hanoi, Vietnam

    Pham Duc Hieu

  2. Foreign Trade University, Hanoi, Vietnam

    Hoang Ha Anh

Authors
  1. Pham Duc Hieu
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  2. Hoang Ha Anh
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Corresponding author

Correspondence to Hoang Ha Anh .

Editor information

Editors and Affiliations

  1. Centre for Post-Graduate Studies, Hanoi University of Industry, Hanoi, Vietnam

    Thi Hong Nga Nguyen

  2. Gillings School of Global Public Health, University of North Carolina at Chapel, Chapel HIll, NC, USA

    Darrell Norman Burrell

  3. Department of Computer Science and Engineering, CMR Institute of Technology, Hyderabad, Telangana, India

    Vijender Kumar Solanki

  4. Accounting and Auditing Faculty, Academy of Finance, Hanoi, Vietnam

    Ngoc Anh Mai

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Hieu, P.D., Anh, H.H. (2024). Income Smoothing Practices: Evidence from Vietnam Stock Exchange Market. In: Nguyen, T.H.N., Burrell, D.N., Solanki, V.K., Mai, N.A. (eds) Proceedings of the 4th International Conference on Research in Management and Technovation. ICRMAT 2023. Springer, Singapore. https://doi.org/10.1007/978-981-99-8472-5_14

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