Earning management to exceed threshold: Evidence from Vietnamese commercial banks


earning management
commercial bank
earning distribution approach quản trị lợi nhuận
ngưỡng mục tiêu
ngân hàng thương mại


Earning management to exceed thresholds is the practice of adjusting earnnings to achieve one or more earning targets. To test whether commercial banks are interested in reaching certain targets using earnings management, we conduct research on the behavior of earning management in 27 joint stock commercial banks in Vietnam from 2010 to 2019 using the earning distribbution approach (EDA). The results provide evidences that avoiding losses and excess planned profits are among the targets that managers aim for, however, it is not clear whether avoiding earning decrease is a target that managers focus on.



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