117 International Journal of Economic Research Factors Affecting Earnings Management: The Case of Listed Firms in Vietnam Factors Affecting Earnings Management: The Case of Listed Firms in Vietnam Ngoc Hung Dang 1 , Thi Viet Ha Hoang 2 and Manh Dung Tran 3 1 Assoc. Prof., Hanoi University of Industry, Vietnam. E-mail: hungdangngockt@yahoo.com.vn 2 Hanoi University of Industry, Vietnam. E-mail: hoangthivietha@gmail.com 3 Assoc. Prof., National Economic University, Vietnam. E-mail: tmdungktoan@yahoo.com Abstract: This research is conducted for investigating affecting levels on earnings management of listed firms on Vietnam Stock Exchange. Data were collected from listed firms for the period from 2012 to 2016. Ordinary least squares (OLS) has been used with the dependent variables of earnings management that is measured from models of Jones (1991), Dechow et al. (1995) and Kothari et al. (2005). The results show that 7 of 8 factors affecting earnings management with statistical significance of 1%, 5% and 10%. Five factors have positive relationships with earnings management, including consolidated financial statements, chair of management board cum a director, financial performance, firm size, and stock issuance. In contrast, two factors have negative relationships with earnings manipulations, including auditor size and financial leverage. This research provides more evidence of earnings management and gives some recommendations for stakeholders in making economics decisions relating to listed firms. Keywords: Earnings management, Factors, Listed firms, Vietnam. 1. INTRODUCTION Profit is viewed as one of the important factors and much interested by stakeholders, and reflects financial performance and prospect growth of an entity. Investors usually invest money in the entity with having big profits and high growth. Because of this, firms in general and listed firms in particular overstate financial performance in important periods for the sake of management. There are many reasons make management transfer profits through financial years by choosing subjective accounting policies. Identifying factors affecting earnings management and adjustment techniques help stakeholders, including investors have reliable financial data for giving sound economic decisions. Many firms changed accounting policies and in consequence affected financial performance. To some extent, this affected economic decisions and benefit on the side of investors. International Journal of Economic Research ISSN : 0972-9380 available at http: www.serialsjournal.com © Serials Publications Pvt. Ltd. Volume 14 • Number 20 • 2017