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Proceedings of the 2022 International Conference on Research in Management & Technovation

Annals of Computer Science and Information Systems, Volume 34

Do Board Friendliness and Economic Development Affect Firm Abnormal Earnings?

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DOI: http://dx.doi.org/10.15439/2022M4337

Citation: Proceedings of the 2022 International Conference on Research in Management & Technovation, Viet Ha Hoang, Vijender Kumar Solanki, Nguyen Thi Hong Nga, Shivani Agarwal (eds). ACSIS, Vol. 34, pages 151–164 ()

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Abstract. This research examines the effect of board friendliness and economic development on the quality of earnings reports using the Vietstock database of all listed firms on the HOSE and HNX in Vietnam from 2011 to 2021. We discovered that higher-quality earnings reports result from firm executives who have previously worked for the same organization, whereas lower-quality financial reports can be the result of directors who acted opportunistically or the development of local GDP and firm growth or directors who graduated from the same university. There is also a negative/positive association between alumni directors/ex-coworking directors and firm's current and future operating cash flows. Finally, firms with misreported financial statements, particularly earnings, spread among well-connected firm executives who operate as channels for the knowledge transfer regarding the practice

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