Congratulations Dr Vu Trinh!
Congratulations to Dr Vu Trinh on his recent publication and conference success.
1) Publication: “The covid-19 outbreak, corporate financial distress and earnings management”
- Journal: International Review of Financial Analysis
- Authors: Dr Vu Trinh (Rainy) and Co-authors
- Short summary about paper: This study explores the association between the Covid-19 outbreak, corporate financial distress and earnings management practices in China. We investigate whether firms took advantage of the downturn in economic conditions during the pandemic to adjust their earnings using different earnings management techniques. Utilising a sample of 1832 listed firms and underlying theoretical frameworks (i.e., positive accounting and signalling theory), we find that firms were more inclined to manage earnings during the pandemic period. They favoured using the accrual-based rather than the real activity-based earnings management technique. We also find that firms engaged more in income-increasing practices in the shadow of the outbreak. In addition, our results further demonstrate that financially distressed firms were involved in earnings management, particularly accrual-based earnings management. However, compared to privately-owned firms, state-owned enterprises seem to be involved less in earnings management during the Covid-19 pandemic. Findings from this study raise some concerns for policymakers about the credibility of financial reporting information during Covid-19.
2) Publication: “Board gender diversity and firm-level climate change exposure: a global perspective”
- Journal: Finance Research Letters
- Authors: Dr Vu Trinh (Rainy) and Co-authors
- Short summary about paper: This study examines the association between board gender diversity and firm-level climate change exposure. Using a global sample of 14,685 firm-year observations covering 2,469 firms across 63 countries from 2000-2021, we find that firms with more gender-diverse boards are likely to exhibit lower climate change exposure. The results remain after we decompose the exposure into three components: exposures to opportunity, physical (e.g., sea level rises), and regulatory shocks (e.g., carbon taxes, cap and trade markets). Our critical mass analysis further confirms that boards with at least two female directors start having such a significant effect.
3) Conference Acceptance: My paper has been accepted for presentation at the IFABS 2023 Oxford Conference (July 2023). The Conference theme is “Headwinds to financial markets and institutions: coping with inflation and geopolitical risks”.
- Conference: IFABS 2023 Oxford Conference, University of Oxford, Saïd Business School.
- Paper’s title: Reconciling Conflicting Perspectives for Board “Friendliness” in Banks’ Risk Management
- Authors: Dr Vu Trinh (Rainy) and Co-authors
- Short summary about paper: We introduce a simplified framework for board friendliness (i.e., board-CEO network ties) – based on its co-existence of benefits and costs – to reconcile its two conflicting views. We then examine banks’ risk management quality via tail risk along the friendliness spectrum and find evidence of a U-shape association confirming a cost-benefit trade-off process. To reach a stationary equilibrium, at most 60% of independent directors should be connected with CEOs, and the total number of board-CEO connections should be, at most, the complete board size. Additionally, banks’ monitoring effectiveness and counselling needs enhance the friendliness benefits and mitigate costs. Banks with the lowest (highest) values of monitoring and counselling needs should allow CEOs to be connected with a maximum of 32.46% (72%) of the board and to have connections equalling 50% (120%) of the board size. Moreover, banks appointing diverse boards can benefit more from friendliness through higher advisory and monitoring effectiveness.