The impact of short-term debt on accruals-based earnings management: Evidence from Vietnam
This study seeks to examine the relationship between short-term debt maturity and accruals-based earnings management using a sample of listed firms in Vietnam from 2010-2017. The extant literature remains under-explored on the impact of short-term debt on accruals-based earnings management at low and high levels of short-term debt. We further dissect the impact of the interaction between the growth opportunities and short debt maturity on accruals-based earnings management. Our findings provide evidence suggesting that short-term debt maturity is likely to exert a desirable impact in lowering earnings management at low levels of short-term debt, while at high levels it tends to increase earnings manipulation, demonstrating a U-shaped relationship. Furthermore, we show that growth opportunities moderate the impact of short debt maturity on earnings management. Specifically, the U-shaped pattern between short-term debt and earnings management is pronounced for firms with low growth opportunities, while for high-growth counterparts that pattern weakens.
Year of publication: |
2020
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Published in: |
Cogent Economics & Finance. - Abingdon : Taylor & Francis, ISSN 2332-2039. - Vol. 8.2020, 1, p. 1-14
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Publisher: |
Abingdon : Taylor & Francis |
Subject: | short-debt maturity | earnings management | growth opportunities | non-linearimpact |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Article |
Language: | English |
Other identifiers: | 10.1080/23322039.2020.1767851 [DOI] 1750958813 [GVK] hdl:10419/245318 [Handle] RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1767851 [RePEc] |
Source: |
Persistent link: https://www.econbiz.de/10012657609
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