Abstract

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.

Details

Title
Earnings quality and the cost of debt: A case study of Vietnam
Author
Van Vu Thi Thuy 1 ; Hung, Dang Ngoc 2 ; Tram Nguyen Ngoc 1 ; Le, Hoang Anh 1 

 School of Banking and Finance, National Economics University, Hanoi, Vietnam 
 Faculty of Accounting & Auditing, Hanoi University of Industry, Hanoi, Vietnam 
Publication year
2022
Publication date
Jan 2022
Publisher
Taylor & Francis Ltd.
e-ISSN
23311975
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2766567817
Copyright
© 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.