Real earning management and firm performance of firms listing on Hanoi stock exchange in the context of promoting sustainability disclosure

Fri, 30 May 2025 00:00:00 -0500

This study investigates the impact of earnings management through real transactions (REM) on corporate financial performance (FP), mediated by sustainability disclosure. Using a sample of 192 companies listed on the Hanoi Stock Exchange (HNX) from 2019 to 2023, the authors analyze the effect of REM on FP, measured by Return on Assets (ROA) and Tobin’s Q, representing accounting-based and market-based performance, respectively. The study also examines the mediating role of environmental, social, and governance (ESG) disclosure in this relationship, given its growing importance. Control variables include company size (SIZE), financial strength (Z-SCORE), growth (GROWTH), and audit quality (AUDIT). Secondary data from financial statements and primary ESG scores based on the Global Reporting Initiative (GRI) Standard are analyzed using STATA. Findings reveal that REM negatively impacts FP, with ESG disclosure acting as a significant mediator. The results suggest that firms engaging in REM undermine their financial performance, particularly when sustainability transparency is considered. Consequently, the study emphasizes the need for businesses to prioritize long-term development, strengthen ESG practices, and curb REM activities to sustain financial health and stakeholder trust. Practical implications highlight the importance of integrating ESG standards into corporate strategy to mitigate the adverse effects of short-term earnings manipulation.

Supply chain list disclosure and stock price crash risk – the role of industry competition and abnormal related-party transactions

Xi Pan, Normaziah Mohd Nor, Leyi Zhang, Ridzwana Mohd Said, Yongpeng Ma — Mon, 16 Jun 2025 00:00:00 -0500

This study looks at how competition in an industry and unusual deals between related parties affect the release of supply chain lists and the risk of a stock price crash. Adding to earlier research that showed a link between supply chain list disclosure and stock price crash risk (SPCR), this study looks at how competition in the industry affects this relationship and how strange transactions involving related parties affect it. A quantitative approach is adopted, with OLS regression performed on a sample of 20,301 firm-year observations of Chinese non-financial listed companies from 2012 to 2022. The findings indicate that industry competition weakens the negative relationship between list disclosure and SPCR. More robust evidence reveals that supply chain list disclosure effectively reduces SPCR only in firms operating in low-competition industries. The results suggest that disclosing supply chain lists may undermine the competitive advantage of enterprises and further intensify the industry competition due to the high proprietary costs, particularly in highly competitive sectors. The mechanism test also shows that making the supply chain lists public lowers the number of strange related-party transactions, which lowers SPCR. Finally, our findings remain robust after conducting a series of robustness checks. This research offers valuable insights for corporate managers in selecting disclosure strategies, informs policymakers on enhancing disclosure regulations, and serves as a reference for investors concerned about SPCR.

Asian Economic and Financial Review

Real earning management and firm performance of firms listing on Hanoi stock exchange in the context of promoting sustainability disclosure

Supply chain list disclosure and stock price crash risk – the role of industry competition and abnormal related-party transactions