The Impact of Accounting Conservatism on Financial Performance in Real Estate Enterprises listed on Vietnam Stock Exchange

Abstract

This study aimed to identify the impact of accounting conservatism on financial performance in real estate enterprises listed on the Vietnam Stock Exchange, where the accounting conservatism was measured through the model of (Ahmed & Duellman, 2007), an approach based on accruals, while the financial performance was measured through the return on assets (ROA), return on equity (ROE), and return on sales (ROS). In order to achieve the objectives of the study, descriptive and analytical approaches were adopted, where the study was conducted on a sample of 285 real estate enterprises listed on the Vietnam Stock Exchange for the period from 2020 to 2023. The research results show that among the independent variables included in the model, there are negatively impacting of the accounting conservatism on financial performance with statistical significance of 1%. This paper contributes to recommended that companies reconsider strict adherence to accounting conservatism principles.