Factors Affecting Earnings Quality of Listed Companies on the Vietnamese Stock Exchange

This study analyzes the factors influencing the earnings quality of listed companies on the Vietnamese stock market, including financial leverage (LEV), firm size (Size), and operational efficiency (ROA). Using a Random Effects Model (REM) with robust standard errors, the results show that firm size and operational efficiency have a statistically significant negative impact on earnings quality, whereas financial leverage does not have a significant effect. These findings suggest that large and highly efficient firms may face market pressure, leading to earnings management practices to enhance financial statement appearances, thereby reducing earnings quality. The study also provides policy implications to improve earnings quality, including strengthening internal controls, enhancing financial information transparency, and encouraging sustainable growth strategies.