Perceived Audit Quality, Earnings Management and Cost of Debt Capital: Evidence from the Energy Listed Firms on Vietnam's Stock Market

Authors

  • Phung Anh Thu Nguyen Tat Thanh University, Vietnam
  • Thai Hong Thuy Khanh Nguyen Tat Thanh University, Vietnam
  • Nguyen Tran Thai Ha Sai Gon University
  • Nguyen Vinh Khuong University of Economics and Law

Abstract

This study examines the impact of perceived audit quality and accrual-based earnings management on cost of debt capital of the energy listed firms on Vietnam's stock market. Our data set includes 29 energy companies on Vietnam stock markets (HNX and HOSE) in the period from 2010 to 2016. We used FEM and REM estimator to test our hypotheses. The results confirm that there is no significant statistical association between accrual-based earnings management and cost of debt. There is a negative association between audit quality, firm size, return on assets and cost of debt while firm leverage and the tangible asset has a positive association. Moreover, global financial crisis has no statistically significant influence on the cost of debt capital. The research results have implications for regulators and investors about the stability of the economy in emerging markets.

Keywords: cost of debt, earnings management, audit quality, energy enterprises, Vietnam.

JEL Classifications: M42; G32

DOI: https://doi.org/10.32479/ijeep.6992

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Author Biographies

Phung Anh Thu, Nguyen Tat Thanh University, Vietnam

Faculty of  Finance and Accounting

Thai Hong Thuy Khanh, Nguyen Tat Thanh University, Vietnam

Faculty of  Finance and Accounting

Nguyen Tran Thai Ha, Sai Gon University

Faculty of  Finance and Accounting

Nguyen Vinh Khuong, University of Economics and Law

Faculty of Accounting and Auditing

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Published

2018-10-28

How to Cite

Thu, P. A., Khanh, T. H. T., Ha, N. T. T., & Khuong, N. V. (2018). Perceived Audit Quality, Earnings Management and Cost of Debt Capital: Evidence from the Energy Listed Firms on Vietnam’s Stock Market. International Journal of Energy Economics and Policy, 8(6), 120–127. Retrieved from http://econjournals.com/index.php/ijeep/article/view/6992

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