Earnings quality and the cost of debt: A case study of Vietnam

This paper examines the impact of earnings quality (EQ) on the Vietnam companies' cost of debt (COD). We use data from companies listed on the Vietnam stock market from 2010 to 2019. In this paper, we develop a model to investigate the influence of audit quality and foreign ownership on COD. We...

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Bibliographic Details
Published in:	Cogent business & management Vol. 9; no. 1; pp. 1 - 22
Main Authors:	Thuy, Van Vu Thi, Ngoc, Hung Dang, Ngoc, Tram Nguyen, Le, Hoang Anh
Format:	Journal Article
Language:	English
Published:	Abingdon Taylor & Francis 31-12-2022 Cogent Taylor & Francis Ltd Taylor & Francis Group
Subjects:	Accounting Asymmetry Audit quality Capital expenditures Case studies Cash flow forecasting Corporate profits cost of debt Earnings management earnings quality Economics financial constraints Financial statements foreign ownership Institutional investments Securities markets
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Summary:	This paper examines the impact of earnings quality (EQ) on the Vietnam companies' cost of debt (COD). We use data from companies listed on the Vietnam stock market from 2010 to 2019. In this paper, we develop a model to investigate the influence of audit quality and foreign ownership on COD. We find that EQ had a negative relationship with COD. However, when firm is in financial distressed, EQ has a positive relationship with COD. As an intermediate variable, EQ also has a negative relationship with COD.
ISSN:	2331-1975 2331-1975
DOI:	10.1080/23311975.2022.2140489