The practice and praxis of earnings management – views from practitioners in Vietnam

Purpose – The purpose of this study is to analyze how practitioners in Vietnam understand and engage in earnings management, through the lens of practice theory. Design/methodology/approach – This study relies on data collected from interviews with 30 accountants, auditors and regulators in Vietnam. The data were analyzed using thematic analysis, resulting in three key themes: practitioners’ understanding of earnings management; the relationship between accounting standards and earnings management; and the praxis of earnings management. Findings – This study examines why practitioners in Vietnam engage in earnings management, often as a response to the pressures received from organizational superiors. The lack of consistent and comprehensive regulation, alongside the discretion permitted within Vietnamese accounting standards, are enablers of earnings management. Originality/value – This study demonstrates that an assessment of earnings management should not occur without considering the context and/or motivations of practitioners. It also shows the limitations inherent in Vietnamese accounting standards and their lack of enforcement as factors contributing to earnings management activity.