The Impact of Corporate Governance Characteristics on the Implementation of the Principle of Prudence in Accounting of Listed Vietnamese Companies

This study explores the impact of corporate governance characteristics on the implementation of the principle of prudence in accounting through data collected from 318 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) during the period 2015–2019. The results show that the state ownership ratio (OWNGOV) and financial leverage (LEV) have a positive relationship with the implementation of the principle of prudence. In contrast, the percentage of non-executive members (BINDEP), the percentage of members with expertise in accounting and finance (BEXPERT), the management ownership ratio (MANOWN), and enterprise size (SIZE) have a negative relationship. In addition, the Board size (BSIZE), the dual role of Chairman and CEO (DUAL), and audits conducted by Big4 firms (BIG4) have no significant impact on the implementation of the principle of prudence. The findings provide useful information for investors, enterprises, state management agencies, and researchers in analyzing and evaluating the quality of financial reporting from the perspective of corporate governance, thereby supporting appropriate adjustments and decision-making based on the information disclosed by enterprises.