Market concentration and financial statement comparability: what is the role of state ownership? Evidence from SYS GMM and fsQCA
ISSN: 0114-0582
Article publication date: 4 April 2024
Issue publication date: 29 April 2024
Abstract
Purpose
This paper aims to explore the moderating role of state ownership variables on the relationship between market concentration (MC) and financial statement comparability (FSC) in Vietnam.
Design/methodology/approach
This study uses data from the financial statements of 475 nonfinancial listed companies for the period from 2010 to 2019. This study uses both the system generalized method of moments and fuzzy-set qualitative comparative analysis (fsQCA) to consider the correlation and causal–effect relationships of the variables in the model.
Findings
The results show that MC has a positive relationship with FSC, and MC tends to exert a stronger impact on FSC for firms with higher state ownership. In addition, this study suggests that some combinations help improve FSC. This study has important implications for investors, managers and especially state-owned organizations when market power becomes fierce.
Originality/value
This study contributes to the literature on the comparability of financial statements in the context of developing countries that have not fully adopted International Financial Reporting Standards. Furthermore, this study applies the fsQCA method to complement the linear regression method.
Keywords
Acknowledgements
The authors thank Associate Professor Thu Phuong Truong (editor) and two anonymous reviewers for their helpful comments and suggestions on their paper.
Data availability statement: The data of the present study will be available on request from the corresponding author.
Funding: This work was supported by the University of Economics, Ho Chi Minh City, Vietnam.
Conflict of interest disclosure: The authors declare no conflict of interest.
Ethics approval statement: The authors adhere to the ethical guidelines required by the journal.
Citation
Thu, P.A. and Huy, P.Q. (2024), "Market concentration and financial statement comparability: what is the role of state ownership? Evidence from SYS GMM and fsQCA", Pacific Accounting Review, Vol. 36 No. 1, pp. 120-143. https://doi.org/10.1108/PAR-08-2022-0119
Publisher
:Emerald Publishing Limited
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