Investigating income smoothing:  Empirical evidence from Vietnam's listed companies

Phung Anh Thu; Nguyen Vinh Khuong

doi:10.46223/HCMCOUJS.econ.en.7.2.188.2017

7 (2) 2017

Investigating income smoothing: Empirical evidence from Vietnam's listed companies

Author - Affiliation:

Phung Anh Thu - Nguyen Tat Thanh University , Vietnam

Nguyen Vinh Khuong - University of Economics and Law-Vietnam National University HCMC , Vietnam

Corresponding author: Phung Anh Thu - phunganhthu1990@gmail.com

DOI:10.46223/HCMCOUJS.econ.en.7.2.188.2017

Abstract

Income smoothing is a dimension of the accounts manipulation theme that has been attracting great attention in the accounting literature. A goal of manipulation is widely ascribed to managers who wants income smoothing. The author has tried to investigate income smoothing at listed companies on the Stock Exchange. For this purpose, we chose a stratified random sample of 285 companies from formula listed companies on Vietnam Stock Exchange. We carried the mechanism for smooth and non-smoothing companies Eckel model (coefficient of variation of the distribution of profits to sales). We have compared 111 smoothing companies and 174 non-smoothing companies. The study results suggest that the Eckel index is suitable for the Vietnam stock market and shows a slight increase compared to the previous research.

Keywords

Income smoothing;Listed firms;Vietnam

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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.7.2.188.2017

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