The effect of accounting information on share prices of companies listed on ho chi minh stock exchange

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING GRADUATION THESIS THE EFFECT OF ACCOUNTING INFORMATION ON SHARE PRICES OF COMPANIES LISTED ON HO CHI MINH STOCK EXCHANGE Major: Accounting Code: 34 03 01 TRINH THANH PHUONG HO CHI MINH CITY, 2023 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING GRADUATION THESIS THE EFFECT OF ACCOUNTING INFORMATION ON SHARE PRICES OF COMPANIES LISTED ON HO CHI MINH STOCK EXCHANGE Major: Accounting Code: 34 03 01 Student’s name: TRINH THANH PHUONG Student’s code: 050607190409 Class: HQ7- GE01 THESIS SUPERVISOR ASSOC PROF., PH.D NGUYEN THI LOAN HO CHI MINH CITY, 2023 i TÓM TẮT Luận án xem xét mối quan hệ thông tin kế tốn giá cổ phiếu cơng ty niêm yết Sở giao dịch chứng khoán TP.HCM (HOSE) giai đoạn 2018 – 2022 Luận án trình bày yếu tố ảnh hưởng đến giá cổ phiếu doanh nghiệp niêm yết bao gồm: Thu nhập cổ phiếu, Giá trị sổ sách cổ phiếu, Lợi nhuận tài sản, Lợi nhuận vốn chủ sở hữu, Cổ tức cổ phiếu, Đòn bẩy tài chính, Quy mơ cơng ty, Tỷ lệ giá thu nhập Để đánh giá mức độ ảnh hưởng yếu tố này, nghiên cứu thu thập liệu báo cáo thường niên 277 công ty niêm yết thị trường chứng khốn Thành phố Hồ Chí Minh thời gian năm Tiếp theo, nghiên cứu tiến hành phân tích thống kê mơ tả phân tích hệ số tương quan để kiểm tra mối tương quan mức độ phù hợp biến độc lập đo lường mơ hình hồi quy Bình phương tối thiểu thơng thường (OLS), Mơ hình hiệu ứng cố định (FEM), Mơ hình hiệu ứng ngẫu nhiên (REM) Bình phương tối thiểu tổng quát khả thi (FGLS) Kết cho thấy Thu nhập cổ phiếu, Giá trị sổ sách cổ phiếu, Tỷ suất sinh lời tài sản, Tỷ suất sinh lời vốn chủ sở hữu, Cổ tức cổ phiếu, Quy mô công ty, Tỷ lệ giá thu nhập ảnh hưởng đến giá cổ phiếu công ty niêm yết HOSE Địn bẩy tài khơng ảnh hưởng Từ kết đó, tác giả đưa khuyến nghị cho bên liên quan nhằm nâng cao chất lượng thơng tin kế tốn cơng bố báo cáo tài Từ khóa: Thơng tin kế tốn, giá cổ phiếu, công ty niêm yết, HOSE ii ABSTRACT The thesis examines the relationship between accounting information and share prices of listed companies on Ho Chi Minh Stock Exchange (HOSE) in the period of 2018 – 2022 The thesis presents factors affecting share prices of listed enterprises including: Earnings per share, Book value per share, Return on assets, Return on Equity, Dividend per share, Financial leverage, Firm size, Price-toearnings ratio To assess the influence of these factors, the research collected data on annual reports of 277 companies listed on the stock market in Ho Chi Minh City over 5-year period Next, the research conducted descriptive statistical analysis and correlation coefficient analysis to examine the correlation and relevance of independent variables measured Ordinary Least Squares regression model (OLS), Fixed Effect Model (FEM), Random Effect Model (REM) and Feasible Generalized Least Squares (FGLS) The result shows that Earnings per share, Book value per share, Return on assets, Return on Equity, Dividend per share, Firm size, Price-to-earnings ratio influencing share prices of listed companies on HOSE, and Financial leverage does not affect From the result, the author make recommendations for stakeholders to enhance the quality of accounting information disclosed in financial statements Keywords: Accounting information, share prices, listed companies, HOSE iii DECLARATION The author commits that the graduate thesis: ―The effect of accounting information on share prices of listed companies listed on Ho Chi Minh Stock Exchange‖ is completed by me under the guidance of Ms Nguyen Thi Loan and the result of this study have not been published in any other scientific work Ho Chi Minh city, 30 August, 2023 The Author Trinh Thanh Phuong iv GRATEFUL The author wants to express her respect and gratitude to Assoc Prof., PhD Nguyen Thi Loan, the scientific instructor for the author during the course of the thesis Thanks to her dedicated guidance, the author has overcome obstacles and achieved the result today Next, the author would like to express sincere thanks to the all teachers in Ho Chi Minh University of Banking in general, especially the professors of Accounting and Auditing Faculty in particular who have dedicated and instructed the author to complete the study program Thereby, helping authors to accumulate and supplement the necessary knowledge for the implementation of this thesis topic Finally, the author would like to thank her family, because they always encourage and create the best condition for her to complete the thesis Best regards! Ho Chi Minh city, 30 August, 2023 The Author Trinh Thanh Phuong v TABLE OF CONTENTS TÓM TẮT i ABSTRACT ii DECLARATION iii GRATEFUL iv ABBREVIATION LIST ix LIST OF TABLES xi LIST OF GRAPHS AND DIAGRAMS xii CHAPTER 1: INTRODUCTION 1.1 The necessity of the topic 1.2 Research objectives 1.2.1 Overall objective 1.2.2 Specific objectives 1.3 Research questions .2 1.4 Object and scope of the study 1.4.1 Research object 1.4.2 Research scope 1.5 Research methodology .3 1.6 Significance of research .4 1.7 Structure of the themes SUMMARY OF CHAPTER CHAPTER 2: LITERATURE REVIEW AND THEORICAL FRAMEWORK 2.1 Previous studies 2.1.1 Foreign studies 2.1.2 Studies in Vietnam 2.1.3 Determination of research gap 12 vi 2.2 General problems of annual financial statements 13 2.2.1 Definition 13 2.2.2 Basic content 13 2.2.3 Time for submitting and publishing 14 2.2.4 The role of accounting information on financial statements 15 2.3 Stock market and stock 15 2.3.1 Stock market 15 2.3.2 Stock 17 2.3.2.1 Share .17 2.3.2.2 Share price 17 2.4 Related theories 18 2.4.1 Agency theory 18 2.4.2 Efficient market hypothesis 19 2.4.3 Signaling theory 19 2.4.4 Bird-in-hand theory 20 2.4.5 Random walk hypothesis 20 SUMMARY OF CHAPTER .21 CHAPTER 3: RESEARCH METHODOLOGY 22 3.1 Research process 22 3.2 Research method 23 3.3 Research model .23 3.3.1 Regression model of factors affecting share prices 23 3.3.2 Variable measurement 28 3.4 Data collection 31 3.4.1 Sampling 31 3.4.2 Research process 33 3.5 Data analysis 34 3.5.1 Best model selection test 34 vii 3.5.2 Test for multicollinearity 35 3.5.3 Test for autocorrelation 35 3.5.4 Test for heteroskedasticity 36 SUMMARY OF CHAPTER .37 CHAPTER 4: RESULTS AND DISCUSSION 38 4.1 Introducing the history of establishment and development of the securities market 38 4.1.1 History of establishment and development of Vietnam stock market 38 4.1.2 HOSE's history of establishment and development 38 4.2 The situation of voluntary information disclosure on financial statements of enterprises on HOSE 40 4.2.1 Evaluation of voluntary information disclosure on enterprises' annual financial statements 40 4.2.2 Descriptive statistical analysis 41 4.3 Testing the research model 48 4.2.1 Testing correlation between variables 48 4.2.2 Testing multicollinearity 49 4.2.3 Comparison Pooled OLS and FEM 49 4.2.4 Comparison Pooled OLS and REM 50 4.2.5 Comparison FEM and REM 51 4.2.6 Heteroskedasticity diagnostics 51 4.2.7 Autocorrelation diagnostics 51 4.3 Regression analysis 52 4.4 Discussion 56 SUMMARY OF CHAPTER .59 CHAPTER 5: CONCLUSION AND IMPLICATIONS 60 5.1 Conclusion 60 5.2 Policy implications 62 5.2.1 For listed companies 62 viii 5.2.2 For auditing firms 63 5.2.3 For investors 64 5.2.4 For the government 64 5.3 Limitations 65 5.4 Future studies 66 SUMMARY OF CHAPTER .67 REFERENCES lxviii APPENDIX xviii