The Impact of Earnings Quality on the Financial Performance of Listed Companies on the Vietnam Stock Market

This study examines the impact of earnings quality (EQ) on the financial performance of listed companies on the Vietnamese stock market, considering the moderating effects of firm growth (Growth) and firm size (Size). Using data from non-financial firms and applying the Feasible Generalized Least Squares (FGLS) regression model, the research provides empirical evidence on how earnings quality, growth, and firm size influence financial performance, measured by return on assets (ROA). Contrary to expectations, the results indicate that earnings quality has a negative and statistically significant impact on ROA, suggesting that firms with high-quality earnings may adopt conservative accounting policies, which enhance transparency but potentially limit short-term profitability. Meanwhile, growth and firm size positively affect financial performance, implying that high-growth firms benefit from market expansion and economies of scale, while larger firms leverage their financial capacity and governance structures to improve efficiency. These findings highlight that while growth and firm size contribute positively to financial performance, earnings quality may reflect prudent financial strategies rather than acting as a direct driver of profitability. The study offers important policy implications, recommending that firms balance earnings quality and accounting conservatism, implement sustainable growth strategies, and enhance financial transparency to optimize long-term financial performance.