Can audit quality predict earnings persistence?

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Nguyen Vinh Khuong
Nguyen Thanh Liem
Tran Anh Tai


Research on the impact of audit quality on earnings persistence is of interest to both managers, investors, and researchers, but does not yield consistent results. Therefore, this study aims to examine the link between these two factors with audit firm size as a measure of audit quality. We use quantitative analysis through the instrumental variables (IV) regression for a sample of 228 listed firms from 2014 to 2017 in the Vietnamese stock market. Our finding shows that audit quality has a positive effect on earnings persistence. This trend is also true for firm size and cash ratio, while debt ratio and firm age negatively impact earnings persistence. Our research contributes to the current literature by providing evidence for further studies in this field and proposes some viable solutions for functional government agencies, audit companies, and enterprise managers in improving the quality of auditing and information disclosed.


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Nguyen Vinh Khuong, Nguyen Thanh Liem, & Tran Anh Tai. (2022). Can audit quality predict earnings persistence?. Asian Academy of Management Journal. Retrieved from
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