Phuong Thuy Vuong

Composition of the Jury

Abstract

This dissertation presents four empirical studies conducted in the Vietnamese context and related to corporate governance, earnings management (EM), insider trading, and the informativeness of stock prices (SPI). Earnings management (EM) is measured both by accruals (AEM)—using the “modified Jones” and Kothari models—and by actual manipulations (REM) through three measures: abnormal operating cash flow (REMCFO), overproduction (REMPROD), and discretionary spending (REMDIS). In the first chapter on “Shareholder Structure and Earnings Management,” we find that the government as a shareholder mitigates AEM and REM through REMCFO. The results also show that companies owned by foreign investors engage in less AEM but more actual manipulation (REMPROD and REMDIS). The second chapter focuses on the relationship between gender diversity and earnings management. In terms of AEM (Kothari model), we show that the presence of female CEOs reduces manipulation, whereas their presence on boards increases it. The relationship is also positive in terms of REM (REMPROD) as measured by the Shannon index. The third paper examines the role of insider trading as a mediator between corporate governance and earnings management; the results confirm this mediating effect, but only in the presence of the government as a shareholder and foreign investors, and when EM is measured by REMDIS. The final chapter explores the link between the three dimensions of governance and SPI, with a particular focus on the mediating effect of EM. It shows that the three dimensions of governance improve SPI, but the analysis of the mediating role of EM in these relationships yields mixed results. Our findings have potential implications for Vietnamese policymakers by demonstrating how corporate governance can increase transparency and accountability toward investors.

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