Proposed model of the impact of accounting conservatism on firm performance of listed companies on HoSE
Published: August 7, 2026
Abstract
Based on positive accounting theory, agency theory, and financial information quality theory, this study proposes a model examining the impact of accounting conservatism on firm performance. Empirical results from OLS, FEM, and FGLS models show a positive relationship between conservatism and firm performance. The findings confirm the robustness of the model and highlight the importance of conservatism in improving firm performance.
Keywords
accounting conservatismfirm performanceHOSEfinancial information quality
References
1.
Bộ Tài chính. (2002). Quyết định số 165/2002/QĐ-BTC ngày 31/12/2002 về Hệ thống Chuẩn mực Kế toán Việt Nam
2.
Hùng, Đ. T., Anh, N. T. L., Lê Thuỷ, N., Quyên, M. T., & Lê Yến Nhi, V. D. L. (2023). Ảnh hưởng của tính thận trọng trong kế toán đến hiệu quả hoạt động của công ty: Bằng chứng từ các công ty niêm yết trên Sàn Giao dịch Chứng khoán Hà Nội. Tạp chí Khoa học và Đào tạo Ngân hàng, 253.
3.
Nguyen, T. X. H., Nguyen, T. H., & Pham, D. C. (2023). The impact of accounting conservatism on return on assets in construction and real estate enterprises listed in Vietnam. Tạp chí Kinh tế và Phát triển (Journal of Economics and Development), (311), 23-32.
4.
Ahmed, A. S., & Duellman, S. (2007). Accounting conservatism and board of directors characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2-3), 411-437.
5.
Al-Fasfus, F. S., Al-Rawashdeh, A. M., Al-Theebeh, Z. A., & Al-Enabi, H. (2022). The impact of accounting conservatism on financial performance in services companies listed on Amman Stock Exchange. Academic Journal of Interdisciplinary Studies, 11(4), 1-15.
6.
Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: Comparative loss recognition timeliness. Journal of Accounting and Economics, 39(1), 83-128.
7.
Barney, J. (1997). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
8.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37.
9.
Chan, K., Chan, L., Jegadeesh, N., & Lakonishok, J. (2006). Earnings quality and stock returns. Journal of Business, 79, 1041-1082.
10.
Financial Accounting Standards Board. (1980). Statement of Financial Accounting Concepts No. 2: Qualitative characteristics of accounting information.
11.
Garcia Lara, J. M., Garcia Osma, B., & Penalva, F. (2009). Accounting conservatism and corporate governance. Review of Accounting Studies, 14, 161-201.
12.
Givoly, D., & Hayn, C. (2000). The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative? Journal of Accounting and Economics, 29(3), 287-320.
13.
Goddard, J., Tavakoli, M., & Wilson, J. O. S. (2005). Determinants of profitability in European manufacturing and services: Evidence from a dynamic panel data. Applied Financial Economics, 15(18), 1269-1282.
14.
International Accounting Standards Board. (2018). Conceptual framework for financial reporting.
15.
Nguyen, H. T., & Nguyen, H. T. X. (2024). Accounting conservatism and financial performance through book value: Evidence from manufacturing enterprises listed in Vietnam. International Journal of Applied Economics, Finance and Accounting, 20(2), 201-211.
16.
Penman, S., & Zhang, X. (2002). Accounting conservatism, the quality of earnings, and stock returns. The Accounting Review, 77(2), 237-264.
17.
Sana'a, N. M. (2016). The effect of accounting conservatism on financial performance indicators in the Jordanian insurance companies. Journal of Internet Banking and Commerce, 21(1), 1-16.
18.
Shubita, M. F. (2021). Accounting conservatism and profitability of commercial banks: Evidence from Jordan. Journal of Asian Finance, Economics and Business, 8(6), 145-151.
19.
Watts, R. L. (2003). Conservatism in accounting Part I: Explanations and implications. Accounting Horizons, 17, 207-221.
20.
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Prentice-Hall.
