This paper analyzes the fit of the modified Jones model in identifying profit adjustment of 54 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) in the accounting year of 2010. The research results show that the Modified Jones model is not effective in identifying profit adjustment of the enterprises listed on HOSE because of the coefficient measuring the fit of the model (R2 = ). | 28 | Phạm Thị Bích Vân Model For Identifying Profit Adjustment Of Enterprises Model for Identifying Profit Adjustment of Enterprises Listed on Ho Chi Minh City Stock Exchange PHẠM THỊ BÍCH VÂN* ABSTRACT This paper analyzes the fit of the modified Jones model in identifying profit adjustment of 54 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) in the accounting year of 2010. The research results show that the Modified Jones model is not effective in identifying profit adjustment of the enterprises listed on HOSE because of the coefficient measuring the fit of the model (R 2 = ). After analyzing the macroeconomic environment of the HCMC stock market in particular and Vietnam in general, such variables as revenue, depreciation cost and provision cost are selected and added to the model, the R2 coefficient is found to increase to . Moreover, all the variables are significant. Keywords: profit adjustment, modified Jones model, HOSE. 1. INTRODUCTION Recently, enterprises have tended to delay their submission and disclosure of financial statements. Moreover, there is a huge difference in profits before and after auditing. According to Vietstock statistics, up until April 22, 2011, there were 57 listed companies, or of the enterprises listed on HOSE and Hanoi Stock Exchange (HNX), with profit difference after examination. In terms of percentage, Meca Vneco Electricity Investment and Construction Joint-Stock Company (JSC) holds the leading position with losses rising to 334% after examination. Regarding absolute numbers, the top spot belongs to Việt Hải Real Estate Investment JSC with a loss of nearly VND250 billion, up VND17 billion compared to before examination. In contrast, quite a few listed companies have their profit rising after examination. For example, Tường An Vegetable Oil JSC has its profit up from billion to VND14 billion, NET Detergent JSC up from billion to billion and Chợ Lớn Water Supply SJC up from
