HO CHI MINH CITY UNIVERSITY OF ECONOMICS ---NGUYEN THANH LONG VOLUNTARY DISCLOSURE IN ANNUAL REPORTS IMPACT ON FINANCIAL PERFORMANCE OF ENTERPRISES LISTED ON THE VIETNAMESE STOCK MARKET
Trang 1HO CHI MINH CITY UNIVERSITY OF ECONOMICS
-NGUYEN THANH LONG
VOLUNTARY DISCLOSURE IN ANNUAL REPORTS IMPACT ON FINANCIAL PERFORMANCE OF ENTERPRISES LISTED ON THE VIETNAMESE
STOCK MARKET
Major:Accounting
Code: 9340301
SUMMARY OF DOCTORAL THESIS IN ECONOMICS
Trang 2University of Economics Ho Chi Minh City
Scientific supervisor:
1 Associate Professor, Dr Nguyen Viet
2 Associate Professor, Dr Vo Van Nhi
At … o'clock … day … month … year 20
Thesis can be found at the library:
Trang 31 Nguyen Thanh Long, Pham Ngoc Toan The impact of thequality of financial reporting information of listed companies
on the investment decisions of investors in the Vietnamesestock market Journal - Theoretical information agency of theMinistry of Industry and Trade ISSN: 0866 - 7756 No 2,T2/2018
2 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe investment decisions of individual investors in the Ho ChiMinh City stock market Journal - Theoretical informationagency of the Ministry of Industry and Trade ISSN: 0866 -
7756 No 3, T3/2018
3 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe disclosure of sustainable development information at listedcompanies in the Ho Chi Minh City stock market Journal -Theoretical information agency of the Ministry of Industry andTrade ISSN: 0866 – 7756 No 6, T4/2019
4 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe preparation and presentation of sustainable developmentreports of manufacturing enterprises in the Southeast region.Journal – Theoretical information agency of the Ministry ofIndustry and Trade ISSN: 0866 – 7756 No 6, T4/2019
5 Nguyen Thanh Long, Pham Ngoc Toan, Dang Duc Tiep.Factors affecting the quality of financial reporting information
at Ho Chi Minh City Joint Stock Commercial Banks Journal –Theoretical information agency of the Ministry of Industry andTrade ISSN: 0866 – 7756 No 14, T6/2020
6 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe quality of financial reporting of public educationalinstitutions in Ho Chi Minh City Journal – TheoreticalInformation Agency of the Ministry of Industry and Trade.ISSN: 0866 – 7756 No 15, T6/2021
7 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe accounting information system at state treasury units in Ho
Trang 4the Ministry of Industry and Trade ISSN: 0866 – 7756, No 15,T6/2021.
8 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe application of responsibility accounting in manufacturingenterprises in Ho Chi Minh City Journal – TheoreticalInformation Agency of the Ministry of Industry and Trade.ISSN: 0866 – 7756 No 5, T3/2022
9 Nguyen Thanh Long, Pham Ngoc Toan Factors affectingthe decision to choose accounting services of enterprises in PhuYen Province Journal – Theoretical Information Agency of theMinistry of Industry and Trade ISSN: 0866 – 7756 No 7,T4/2022
10 Nguyen Thanh Long, Nguyen Thi Thanh Tram Factorsaffecting the level of voluntary information disclosure in annualreports of listed enterprises on the Vietnamese stock market.Journal – Theoretical Information Agency of the Ministry ofIndustry and Trade ISSN: 0866 – 7756 T9, 2024
Trang 51 The necessity of the topic
The need for complete, useful and relevant informationdisclosure to various stakeholder groups is gradually increasing(Ananzeh, 2022) Annual reports and financial statements arethe means through which organizations/enterprises conveyrelevant and useful information about their activities tostakeholders - who use the information disclosed by theenterprise to make prudent economic decisions (Afeltra et al.,2023) Annual reports usually contain two main types ofinformation including information disclosed as required by law(mandatory disclosure information) and information notrequired by law (voluntary disclosure information)
Given the importance of voluntary disclosure, manyprevious studies have provided empirical evidence on thefactors that influence it
Studies also use a multi-theoretical framework to explain thereasons and causes of voluntary information disclosure byenterprises such as stakeholder theory; signaling theory; agencytheory; legitimacy theory; cost-benefit analysis theory (Oeyono
et al., 2011; Huynh Thi Van, 2013; Ha Xuan Thach and TrinhThi Hop, 2017; Krisdayanti and Wibowo, 2019); However,the results of previous studies are still inconsistent due to thefact that the requirements for voluntary information disclosurechange over time, or due to the different scope of research in
Trang 6terms of space and time period for data collection or differentregulations on information disclosure in different countries, (Pham Hoai Huong and Tran Thuy Uyen, 2018) Furthermore,according to the author's research, few studies have conductedgeneral research on different groups of factors affectingvoluntary information disclosure of enterprises
Regarding the impact of voluntary disclosure on businesses,according to Einhorn (2005), investors will normally determinethe value of a business based on all available information, soimproved information transparency of businesses will lead tohigher valuations, lower costs of capital and increasedwillingness to invest in businesses (Leuz and Verrecchia, 2000;Healy and Palepu, 2001; Miller and Bahnson, 2004)
In Vietnam, for enterprises listed on the stock market,information disclosure is carried out in accordance with theprovisions of the Securities Law (2019); the Enterprise Law(2020) and Circular 96/2020/TT-BTC effective from January 1,
2021 guiding information disclosure on the stock market,perfecting the legal framework regulating informationdisclosure activities on the stock market, contributing toenhancing the responsibility of information disclosure of marketmembers and investors, while enhancing the transparency of themarket Therefore, within the scope of this study, the authoridentifies the content of voluntarily disclosed information asinformation that is outside the mandatory disclosure
Trang 7requirements in the annual reports of listed enterprisesaccording to current regulations.
From the above analysis, the author chose to conduct a study
on "Voluntary information disclosure in annual reports affectsthe financial performance of listed enterprises on theVietnamese stock market"
2 Research objectives and research questions
The objective of this study isResearch on factors affectingvoluntary information disclosure in annual reports and theimpact of voluntary information disclosure in annual reports onfinancial performance of listed companies on the Vietnamesestock market
To address the above objectives, the followingcorresponding questions are raised:
(1) What factors affect voluntary information disclosure oflisted companies on the Vietnamese stock market? And what isthe level of influence of each factor?
(2) Does voluntary information disclosure affect thefinancial performance of companies listed on the Vietnamesestock market? And if so, what is the extent of the impact?
3 Research object and scope
3.1 Research subjects
Factors affecting voluntary information disclosure and theimpact of voluntary information disclosure on financial
Trang 8performance of listed companies on the Vietnamese stockmarket.
3.2 Scope of research
About space:Companies listed on the Ho Chi Minh CityStock Exchange and the Hanoi Stock Exchange
About time:Collect data from annual reports in the period
2019 - 2022 of enterprises listed on the Vietnamese stockmarket
- Quantitative research method to measure the level ofvoluntary reporting information disclosure, financialperformance indicators of enterprises, build appropriateregression models to measure the impact of voluntaryinformation disclosure on financial performance of enterprises
5 Contribution of the research
In theory:
Trang 9The study contributes to building a research model onfactors affecting voluntary information disclosure and theimpact of voluntary information disclosure on the financialperformance of enterprises As well as building a way tomeasure concepts and research variables in the model.
Using a multi-theoretical framework, the study alsocontributes to consolidating and supporting the arguments ofthe underlying theories including stakeholder theory;managerial motivation theory (Agency theory; Signalingtheory; Cost-benefit analysis theory) and legitimacy theory inexplaining the impact of factors on voluntary disclosure and theinfluence of voluntary disclosure on the financial performance
of enterprises
In practice
Business managers can use the research results of the thesis toclearly see the impact of voluntary information disclosure onthe financial performance of the enterprise From there,managers can adjust the level of voluntary informationdisclosure to achieve the financial performance goals of theenterprise
For stakeholders, the study is a useful reference document tohelp users of voluntary information disclosure of listedenterprises on the Vietnamese stock market identify factorsaffecting the level of voluntary information disclosure of
Trang 10enterprises, and at the same time evaluate the financialperformance of those enterprises in the market.
The study is also a useful reference for researchers
6 Structure of the thesis
The thesis is designed into 5 chapters
Chapter 1: Overview of the research problem: Present
an overview of domestic and foreign research works, identifyresearch gaps and research directions of the thesis
Chapter 2: Theoretical basis:Presenting the theory of
voluntary disclosure, the theory of financial performance.Building a voluntary disclosure index From the theory offinancial performance to build indicators of financialperformance of enterprises Then synthesizing the issues of theimpact of voluntary disclosure on the financial performance ofenterprises Presenting the fundamental theories as a basis forexplaining the research results as well as measuring voluntarydisclosure and financial performance of enterprises
Chapter 3: Research methods:Present the analytical
framework and research process, research methods,measurement of variables in the research model, sample, datacollection and processing methods of the thesis
Chapter 4: Research results and discussion:Present
qualitative and quantitative research results, discuss researchresults to answer the research questions of the thesis
Trang 11Chapter 5: Conclusion and implications:Based on the
research results and discussions, the author presents commentsand policy implications, limitations and recommendations forfuture research directions
Trang 12CHAPTER 1: RESEARCH OVERVIEW
1.3 Comments and identification of research gaps
1.3.1 Comments on previous studies
In studies on the level of voluntary disclosure, there are twomain approaches that researchers can use, including theapproach not based on information disclosure tools and theapproach based on information disclosure tools Of which, theapproach based on information disclosure tools by analyzingthe content of information disclosure tools is considered to bethe most suitable for measuring the level of informationdisclosure The research direction on factors affecting the level
of voluntary disclosure of enterprises has been of interest to
Trang 13many researchers The impact of voluntary disclosure andfinancial performance has long been a central and controversialdebate in research, however, previous empirical studies havereached inconsistent conclusions.
1.3.2 Identify research gaps
Previous studies have been based on the 2005 EnterpriseLaw and the 2006 Vietnam Securities Law or on Circular52/2012/TT-BTC dated April 5, 2012 of the Ministry ofFinance promulgating regulations on information disclosure onthe stock market to determine the contents of disclosure that areconsidered voluntary information disclosure However, theauthor's thesis conducts research on information disclosure oflisted enterprises on the stock market in the period 2019 - 2022,
at this stage, enterprises apply Circular No 155/2015/TT-BTC.And from January 1, 2021, information disclosure is carried outaccording to the guidance of Circular No 96/2020/TT-BTCguiding information disclosure on the stock market Therefore,the author determined that in this study, regarding theconstruction of an index to measure the level of voluntaryinformation disclosure of companies listed on the Vietnamesestock market, the author built it by first inheriting from thepreviously existing information disclosure indexes and thenmaking adjustments to suit the conditions of the Vietnameseeconomy, legal regulations, information disclosurerequirements in general and voluntary information disclosure in
Trang 14particular After the index is built, the author will conductinterviews with experts to build an official index used tomeasure the level of voluntary information disclosure in thisthesis Due to differences in the way of measuring the level ofinformation disclosure, or differences in the scope of theresearch space (such as culture, business behavior, stock marketdevelopment and the level of sustainable development, society,environment in the context of the research country), the results
of previous studies may be different from those of studies onfactors affecting voluntary information disclosure at listedenterprises in Vietnam In previous studies related to the topic,the author found that the results on the impact of voluntaryinformation disclosure on the financial performance ofenterprises are still inconsistent Moreover, for domesticstudies, although there have been many studies on the level ofvoluntary information disclosure affecting different aspects ofenterprises such as competitiveness and operational efficiency,according to the author's research, there are currently fewstudies investigating the impact of voluntary informationdisclosure on the financial performance of enterprises
Trang 15CHAPTER 2: THEORETICAL BASIS
2.1.Theoretical basis for voluntary information disclosure 2.1.1.Concept of mandatory and voluntary disclosure
- Mandatory disclosures are accounting disclosures required
by the laws and regulations of a country or territory Thesedisclosures must be presented in accordance with regulationssuch as the Business Law, Securities Commission, accountingmanagement agencies, and accounting standards, etc
- Voluntary disclosuresVoluntary disclosure is understood
as the disclosure beyond the requirement, representing the freechoice of company managers to provide accounting informationand other information relevant to the decisions of users ofcompany reports, companies are always encouraged to discloseinformation voluntarily (Meek et al., 1995) Thus, voluntarydisclosure is the choice of the enterprise, not mandatory,meaning that an enterprise may or may not need to discloseaccounting information that is not required by law
2.1.2 Content of voluntary information disclosure
FASB (2001) divides voluntary disclosure information intosix categories: business data; management analysis of businessdata; forward-looking information; management andshareholder information; basic company information; andinformation about unrecorded intangible assets
2.1.3 Measuring voluntary disclosure
Trang 16There are two approaches to measuring the level ofvoluntary disclosure of enterprises: (1) an approach that doesnot rely on disclosure tools; and (2) an approach that relies ondisclosure tools
2.2 Overview of the financial performance of the enterprise 2.2.1 Concept of financial efficiency
Financial performance is the ability to manage and control acompany's resources (IAI, 2007) Financial performance can bemeasured by analyzing financial statements using financialratios According to Harahap (2008), financial ratios are dividedinto four types of ratios, namely liquidity ratios, profitabilityratios, solvency ratios, and activity ratios
Based on the above studies, the thesis defines financialefficiency in this study as the ability to manage and control theresources of the enterprise And to measure financial efficiency,this study will focus on financial indicators that reflect past dataand indicators that predict the future financial situation of theenterprise
2.2.2 Evaluation and measurement of financial performance
According to the classification of Orlitzky et al (2003), themeasurement of financial performance of enterprises includesthe following methods: (1) based on market value, (2) based onbook value and (3) measures of perceived financialperformance And above, the author also analyzed the