CONDITIONAL CONSERVATISM AND VALUE RELEVANCE OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE OF LISTED COMPANIES IN VIETNAM

Tóm tắt

This study shed a light on the link between conditional conservatism and value relevance of financial reporting over the period of nine years from 2008 to 2016. Using a large sample of listed firms in Vietnam, the results of the paper indicate that conservatism is a salient feature of the Vietnamese Accounting System. We also have evidence to show that there is a linear association between conservative reporting and value relevance of earnings when moving from low-conservative firms to high-conservative firms. Moreover, no evidence was found regarding the hypothesis that level of conservatism decreasing after promulgation of Circular No. 200/2014/TT-BTC regulating guidance on corporate accounting system.