This paper examines earnings management detection among Vietnamese companies listed on the Hochiminh Stock Exchange (HOSE) by using the Beneish M-score model for a sample of 229 non-financial Vietnamese companies listed on the HOSE during 2013-2014. | VNU Journal of Science: Economics and Business, Vol. 32, No. 2 (2016) 14-23 Using the M-score Model in Detecting Earnings Management: Evidence from Non-Financial Vietnamese Listed Companies Nguyen Huu Anh*, Nguyen Ha Linh School of Accounting and Auditing, National Economics University, Hanoi, Vietnam, 207 Giai phong, Hai Ba Trung, Hanoi, Vietnam Abstract Earnings management is considered to be one of the most important issues related to financial statements, which has been well-documented in accounting theory and practice for a long time. Earnings management has become a critical topic in accounting, but few researchers have addressed this issue in the Vietnamese context. This paper examines earnings management detection among Vietnamese companies listed on the Hochiminh Stock Exchange (HOSE) by using the Beneish M-score model for a sample of 229 non-financial Vietnamese companies listed on the HOSE during 2013-2014. The results showed that non-financial Vietnamese companies listed on the HOSE were involved in earnings management and the sample observations fit the Beneish M-score model. In conclusion, this study suggests that the M-score model is one of the useful techniques in detecting earnings manipulation behaviors of the companies and it could be applied for an improvement in financial reporting quality and a better protection for investors. Received 15 July 2015, revised 9 June 2016, accepted 28 June 2016 Keywords: Earnings management, detecting, M-score model, non-financial Vietnamese listed companies. 1. Introduction * numbers” [1]. Schipper (1989) defines earnings management as “the purposeful intervention in the external financial reporting process with the intent of private gains” [2]. Along with many serious financial crises (Enron, Worldcom, Xerox ), users’ reliance on financial information published on stock markets is declining. Since then, earnings management and how to detect it are big concerns of academics, regulators and .
