Quality of information on the financial statement of seafood processing enterprises for export in vietnam

LE THI LOAN QUALITY OF INFORMATION ON THE FINANCIAL STATEMENT OF SEAFOOD PROCESSING ENTERPRISES FOR EXPORT IN VIETNAM Major : Accounting Code : 9.34.03.01 SUMMARY OF ECONOMIC THES

LE THI LOAN QUALITY OF INFORMATION

ON THE FINANCIAL STATEMENT

OF SEAFOOD PROCESSING ENTERPRISES

FOR EXPORT IN VIETNAM

Major : Accounting

Code : 9.34.03.01

SUMMARY OF ECONOMIC THESIS

HA NOI - 2023

at Academy of Finance

Scientific instructors: 1 Assoc.Prof., Nguyen Vu Viet

2 Assoc.Prof., Luu Duc Tuyen

Reviewer 1:

Reviewer 2:

Reviewer 3:

The thesis will be defended at the Council of thesis Academy level, meeting at the Academy of Finance At hour day month year 20

The thesis can be found at the National Library and Library of Finance Academy

INTRODUCTION

1 Problem statement and rationale for choosing the topic

In Vietnam, there have been several instances of fraudulent activities

in the preparation of financial statements among well-known enterprises, including Vien Dong Pharmaceutical Company in 2011, Tay Bac Mineral Investment Joint Stock Company in 2012, and Wood Industry Group in

2016 The occurrence of fraud in these enterprises has raised concerns about the reliability and accuracy of financial information disclosed in their statements As a response, regulatory bodies have implemented various corrective measures, conducted thorough inspections, and required enterprises to improve the quality of audit reports, particularly for public interest entities (Dao Thi Thuy Hang, 2022)

One significant issue is that Vietnamese enterprises have not yet fully adopted international accounting standards when preparing and presenting their financial statements Additionally, there have been no effective sanctions imposed on companies that violate the integrity of financial information Consequently, the absence of strict penalties has failed to act as

a sufficient deterrent, leading to the continued prevalence of fraudulent activities and the dissemination of false information This situation has detrimental effects on the users of financial information Therefore, enhancing the quality of financial information disclosed in enterprise statements remains a critical concern, deserving substantial attention and improvement in the realm of academic discussion

The seafood processing industry plays a pivotal role in Vietnam's economy, serving as a major commodity production sector and leading the way in international economic integration According to the Agro-Forestry-Fisheries Quality Management Department, as of the end of 2020, Vietnam was home to 798 seafood processing enterprises dedicated to exports These enterprises have made significant contributions to the restructuring of agricultural and rural economies, effectively combating hunger and poverty, generating employment opportunities for workers, and enhancing the overall living standards of the communities they serve

With Vietnam's accession to the World Trade Organization (WTO) and its involvement in various Free Trade Agreements (FTAs) alongside new generation agreements like the CPTPP and EVFTA, the seafood industry, in general, and Vietnamese export processing enterprises have experienced a wealth of opportunities These include expanded export markets, greater participation in the global supply chain, and increased potential for attracting foreign investment

However, alongside these opportunities, the seafood exports of Vietnam also face several challenges, particularly related to strict standards

on food safety, traceability, environmental protection, and sustainable

development These challenges necessitate that Vietnamese export processing enterprises improve their production capacity, invest in advanced production technology, meet environmental standards, and continuously strive to create competitive advantages Adhering to these principles is essential for managers to make well-informed business decisions, meet investor demands for quality and quantity of information disclosed periodically, and find solutions to enhance competitiveness and achieve sustainable development in the market

In practice, the quality of information on financial statements of Vietnamese export processing enterprises still exhibits certain limitations Some of the provided information lacks specificity and clarity, making it less suitable for users, and there are gaps in environmental-related disclosures Therefore, it is crucial to conduct a comprehensive study to assess the current state of information quality on financial statements, evaluate achievements, and identify existing shortcomings and limitations

By understanding the factors influencing the quality of financial information, relevant solutions and recommendations can be formulated to enhance the quality of financial reporting in these enterprises

In light of the aforementioned reasons, the author has selected the research topic "Quality of information on financial statements of seafood processing and exporting enterprises in Vietnam" as the focal point of this

Firstly, measure the quality of information on the financial statements

through the quality of profits

Secondly, measure the quality of information on financial statements

by focusing on the relationship between accounting profit data on financial statements and stock market reaction

Thirdly, the measurement of information quality on financial

statements is based on one or several specific factors published in the annual report of the enterprise

Fourthly, the measurement of information quality on financial

statements is based on the attributes of information quality

Through the review of research works related to the measurement of information quality on financial statements, the author found that only the method of measuring information quality on financial statements based on attributes of information quality can comprehensively assess information quality

on financial statements Moreover, with the research object including enterprises

listed on the stock market and enterprises not listed on the stock market, the

choice of the fourth method is suitable for the purpose of the thesis

2.2 Overview of research studies on factors affecting the quality of information in financial statements of enterprises

Typical studies such as: Research by Hongjiang Xu et al (2003) [ n study by Nunuy Nur Afiah and Dien Noviany Rahmatika (2014), research by Rapina (2014) In Vietnam, over time, there have been many studies on the factors affecting information quality on financial statements with different research scopes Typically, research by Pham Quoc Thuan (2016), research by Tran Thi Phuong Mai (2020), Mai Thi Hoa (2020), Le Thi Tram Anh (2022), Dao Thi Nhung (2020) , Hoang Thi Mai Lan (2021), Nguyen Hoang Huyen Thanh (2021) Thus, there have been many studies on the factors affecting the quality of information on financial statements, but the scope of research is different, there are studies at the national level, there are studies at the level of

a group Therefore, the factors affecting the quality of information on the financial statements are also different

2.3 Research gaps

Through an overview of research studies on measuring information quality on financial statements and factors affecting information quality on financial statements, the author finds that there are still gaps as follows:

Firstly, there has been no research on information quality on financial

statements of Vietnamese export processing enterprises in the period of 2019 -

2021 Thus, creating space for the author to continue researching in this thesis

Secondly, it is necessary to study the effects of applying IFRS on the

quality of information on the financial statements of Vietnam's export processing enterprises, so that solutions for each group of enterprises in accordance with the roadmap of the Ministry of Finance are also necessary

Thirdly, in the context of international integration, Vietnam's export

processing and trading enterprises participate in free trade agreements in which the requirements for environmental protection are highly binding, requiring Vietnamese enterprises to pay attention to It is important to present environmental accounting information on financial statements In this thesis,

the author introduces the factor "Disclosure of environmental accounting information" as a new factor that affects the quality of information on the

financial statements of Vietnamese export processing companies

3 Research objectives

3.1 Overall objectives

The overall objective of the thesis is to assess the current situation of information quality on financial statements and analyze the factors affecting information quality on financial statements of Vietnamese seafood processing and exporting enterprises From there, the thesis proposes solutions to improve the quality of information on the financial statements of Vietnamese seafood

processing and exporting companies to better meet the increasing information needs of users

3.2 Detailed objectives

On the basis of the general objective, the specific objectives are detailed as follows:

Firstly, systematize and clarify the theoretical basis of information

quality on the financial statements of enterprises

Secondly, analyze and evaluate the current situation of information

quality on the financial statements of Vietnamese export processing enterprises

Thirdly, determine the influencing factors and measure the influence

of the factors on the quality of information on the financial statements of the export processing enterprises in Vietnam

Fourthly, propose solutions to improve the quality of information on

the financial statements of Vietnamese export processing enterprises

4 Research question

The research in this thesis is centered around examining and addressing the following inquiries, derived from the research objective: Question 1: To what degree can we evaluate the quality of information

on the financial statements of Vietnamese export processing enterprises? Question 2: What are the factors that impact the quality of information

on the financial statements of Vietnamese export processing enterprises, and

to what extent do these factors influence the overall quality?

Question 3: What recommendations and solutions should be put forth

to enhance the quality of information on the financial statements of Vietnamese export processing enterprises?

These three questions form the core focus of the study and will be thoroughly explored and addressed in the academic investigation

5 Object and scope

6 Research Methodology

To be in line with the research content and achieve reliable results, the dissertation utilizes a combined research approach, as follows:

6.1 Qualitative research method:

Based on references to relevant documents such as Accounting Laws, Accounting Standards, Vietnamese Accounting Regulations, viewpoints of professional organizations, dissertations, scientific projects, plans, books, journals, websites, along with the use of interview techniques and author discussions, information is synthesized to identify criteria for evaluating the QIFS and the factors influencing QIFS in Vietnamese seafood processing and exporting enterprises

6.2 Quantitative research method:

The author employs SPSS 20.0 data processing and analysis techniques, including: Descriptive statistics of observed variables; Descriptive analysis; Cronbach's Alpha reliability coefficient analysis; Exploratory Factor Analysis (EFA); Linear regression equations To ensure the reliability and effectiveness of the regression model, the author also conducts the following tests: Hypothesis testing for model fit; Multicollinearity testing; Autocorrelation testing; Independent Samples Test These tests help determine the extent of influence of factors on QIFS in Vietnamese seafood processing and exporting enterprises, as well as the differences in QIFS between listed and unlisted Vietnamese seafood processing and exporting enterprises, and among enterprises of varying scales

7 Achievements and new contributions of the thesis

The thesis has achieved results and has made new contributions in both theory and practice

First, the thesis has systematized and clarified the theoretical basis for

information quality on the financial statements of enterprises In which, the thesis has approached the content of financial statements according to both the provisions of international accounting standards and Vietnamese accounting standards, the quality of information on financial statements is based on the point of view of professional organizations and Vietnamese accounting standards and the results of scientific researchers In addition, the thesis clarifies the background theories and is based on previous empirical studies to synthesize the factors affecting the quality of information on the financial statements of enterprises

Second, on the basis of an overview study of information quality on

financial statements, the thesis has determined the measurement scale of information quality on financial statements of Vietnamese export processing enterprises based on basic attributes and additional attributes from the point of view of IASB (2018)

Third, based on survey data and actual evidence of the financial

statement system of Vietnamese export processing enterprises in the period of

2019 - 2021, the thesis has assessed the current situation of information quality attributes on financial statements of Vietnamese enterprises in the period of 2019 - 2021 Male The research results show that the information

on the financial statements of Vietnamese export processing enterprises has additional attributes that are evaluated at a higher level than the basic attributes

Fourth, combining qualitative and quantitative research methods, the

thesis has identified and evaluated the influence of factors on information quality on financial statements of Vietnamese export processing enterprises including: accountant, Internal control, Management support, IT application, Application of international accounting standards and Environmental accounting information disclosure in which environmental accounting disclosure factors is a new factor introduced into the model and has the characteristics of Vietnamese export processing enterprises

Fifth, solutions and conditions for implementing solutions and

recommendations and proposals to improve the quality of information on financial statements of Vietnamese export processing enterprises are given in the context of Vietnamese enterprises aiming to apply international accounting standards economy to prepare and present financial statements and at the same time in line with the development strategy of Vietnam's fisheries sector

to 2030 with a vision to 2045 in which deep international integration and sustainable development are very important requirements necessary

8 Structure of the dissertation

In addition to the introduction, conclusion, and appendices, the dissertation is structured into 3 chapters:

Chapter 1: Theoretical framework on the quality of information in the

financial statements of enterprises

Chapter 2: Current situation of the quality of information in the

financial statements of seafood processing enterprises for export in Vietnam

Chapter 3: Solutions to enhance the quality of information in the

financial statements of Vietnamese seafood processing and exporting enterprises

Chapter 1 THEORETICAL FRAMEWORK ON THE QUALITY

OF INFORMATION IN THE FINANCIAL STATEMENTS

OF ENTERPRISES 1.1 CORPORATE FINANCIAL STATEMENTS

1.1.1 The concept of corporate financial statements

Financial statements are general reports that provide information on the financial position, business performance, results of operations and cash flows

of an enterprise in the reporting period Financial statements not only provide

financial information but also provide non-financial information to meet the information needs of users in the decision-making process

1.1.2 Corporate financial reporting system

According to the provisions of IAS 01, a complete financial statement system includes: (i) Statement of financial position at the end of the period; (ii) Statement of profit or loss and other comprehensive income for the period; (iii) Report on changes in equity during the period; (iv) Statement of cash flows for the period; (v) The notes to the financial statements, including significant accounting policies and other explanatory information; Comparative information for the previous period and the statement of financial position at the beginning of the period before the entity retroactively applies an accounting policy or adjusts items in the financial statements retrospectively or when reclassifying items on the financial statements

In Vietnam, the financial statement system of enterprises according to regulations includes: (i) Balance sheet (Report of financial position); (ii) Report on business results; (iii) Statement of cash flows; (iv) Notes to the financial statements Specifically:

1.1.3 Elements of corporate financial statements

1.1.3.1 The concept of the elements of corporate financial statements

Financial statements reflect the financial position of an enterprise by synthesizing financial and economic transactions of the same economic nature into elements of the financial statements These factors are directly related to the determination of financial position and business situation of enterprises

1.1.3.2 Recognition of elements of corporate financial statements

Financial statements must record elements of the financial position and business situation of the enterprise; of those elements must be itemized An item is recognized in the financial statements when both of the following criteria are satisfied: (i) It is probable that future economic benefits will flow

to or will be lost; (ii) The item has value and can be measured reliably

1.1.4 Principles of preparation and presentation of corporate financial statements

Principles of preparation and presentation of financial statements include the following principles: Present honestly and comply with accounting standards; Going on, Accrual basis; Consistency; Materiality and Aggregation; Offsetting; Comparable

1.1.5 Users of corporate financial statements

Users of financial statements include two groups of subjects, which are internal entities (enterprises, employees) and external entities (State, investors, suppliers, creditors, etc.) Each object will use the information on the financial statements for different purposes This will affect the objective of providing information of the unit accounting system

1.2 QUALITY OF INFORMATION ON FINANCIAL STATEMENTS 1.2.1 The concept of information quality on financial statements

Information quality on financial statements is understood as a collection of attributes of information on financial statements in accordance with regulations and suitable for internal and external entities

1.2.2 Attributes of information quality on financial statements

1.2.2.1 Perspectives of professional organizations

(1) American Financial Accounting Standards Board (FASB)

In view of FASB (1980), the quality of information on financial statements is identified through two groups of characteristics: Basic

characteristics include relevance and reliability; The secondary characteristic

is consistency and comparability FASB also pointed out the limitations of information quality as a matter of cost-effectiveness considerations; critical and cautious

(2) International Accounting Standards Board (IASB)

According to IASB (2001), information quality characteristics on

financial statements include: Understandable, relevant, reliable, and comparable The IASB also pointed out that the limitations of information

quality are the balance between benefits and costs, timeliness and balance between quality characteristics

(3) Convergence view IASB-FASB

IASB - FASB Convergence Perspective (2010) was developed based

on the project of setting standards for the presentation of information in financial statements in 2004 by these two organizations This view asserts that

appropriateness and fair presentation are two basic attributes of information

in financial statements In addition, the convergent perspective introduces

additional attributes of comparability, verifiability, timeliness, and comparable

(4) Perspectives of the 2018 Conceptual Framework (IASB 2018)

The information quality characteristics of financial statements are the basis for identifying types of information that can be useful to users in making decisions Accordingly, information in financial statements is useful when it must be relevant and faithfully represent what it purports to represent The usefulness of financial information is enhanced if it is comparable, verifiable, timely and understandable

1.2.2.2 The point of view of Vietnamese Accounting Standards (VAS)

According to VAS 01 - General Standards, there are basic requirements for accounting Financial statements are the product of the financial accounting process in enterprises Thus, the information presented on the financial statements also needs to meet the requirements for accounting in general, specifically: Honesty; Objective; Full; Timeless; Understandable; Comparable

1.2.2.3 Perspectives of independent researchers

Jonas and Blanchet (2000) built a scale to measure information quality

on financial statements based on 5 attributes: Relevance; Reliable; Be able to compare; Consistency and Clear, specific Ferdy van Beest et al (2009)

conducted to build the information quality scale on the financial statements

This is a 2nd order scale consisting of 5 components: Appropriate; Honest presentation; Understandable; Be able to compare; Timely

Pham Quoc Thuan (2016) has selected the attributes to assess the quality of financial statements information published by FASB - IASB (2010) including: Appropriate (Predicted value; Confirmed value); Honest presentation (Integrity Values, Neutrality, No Errors); Attributes that increase information quality (Comparable; Verifiable; Timely; Understandable) Financial statements are based on attributes, recent studies by Tran Thi Phuong Mai (2020), Dao Thi Nhung (2020), Mai Thi Hoa (2020) have also clarified the quality of information on the financial statements of a group of

specific enterprises body

On the basis of an overview of the attributes of accounting information

on the financial statements, the author believes that inheriting the view of IASB (2018) according to two groups of fundamental qualitative characteristics (Relevance; Faithful representation) and enhancing qualitative characteristics (Comparability; Verifiability; Timeless and Understandability)

is the best fit

1.2.2.4 Determine the scale to measure the characteristics of the information quality on the financial statements of the enterprises

* Fundamental qualitative characteristics

- Relevance: 6 criteria

- Faithful representation: 4 criteria

* Applying the fundamental qualitative characteristics

- Comparability scale: 3 criteria

- Verifiability scale: 4 criteria

- Timeliness scale: 3 criteria

- Understandability scale: 3 criteria

1.3 RELATED THEORIES AND FACTORS AFFECTING INFORMATION QUALITY ON FINANCIAL STATEMENTS

1.3.1 Theories related to factors affecting the quality of information in financial statements

1.3.1.1 Institutional Theory

Applying institutional theory to explain the influence of applying international accounting standards and disclosing environmental accounting

information to the quality of information on financial statements of

enterprises

1.3.1.2 Representative theory

Applying agency theory, the author believes that the behavioral factors

of profit management, internal control, and independent audit have the ability

to affect the quality of information on the financial statements of enterprises

1.3.1.3 Information processing theory

Applying information processing theory along with previous studies, the author believes that the application of IT using accounting software will be

a factor that affects the quality of information on the financial statements of enterprises

1.3.1.4 Contingency theory

Applying contingency theory, the author believes that the factor of firm size has an impact on the quality of information on the financial statements of enterprises

1.3.1.5 Theory of dependency on resources

Applying this theory, the author believes that the disclosure of environmental accounting information is a factor that affects the quality of information on the financial statements of enterprises

1.3.2 Factors affecting the quality of information in financial statements of enterprises

1.3.2.1 Compliance with international accounting standards 1.3.2.2 Internal control

1.3.2.3 The use of information technology

ENTERPRISES FOR EXPORT IN VIETNAM

2.1 OVERVIEW OF SEAFOOD PROCESSING ENTERPRISES FOR EXPORT IN VIETNAM

2.1.1 Overview of the seafood industry

According to a report of the Vietnamese association of seafood exporters and Producers (VASEP), seafood is identified as a key economic

sector of the country, accounting for about 4-5% of GDP and ranking fifth in export value, after electronics, apparel, crude oil, and footwear industries

2.1.2 Characteristics of production and business activities of seafood processing and exporting in Vietnam

First, seafood processing enterprises for export in Vietnam

operating in the seafood industry have many characteristics such as being heavily dependent on natural and environmental conditions

Second, the products of seafood processing enterprises for export in

Vietnam are quite diverse

Third, seafood processing enterprises for export in Vietnam are diverse

in business fields

Fourth, seafood processing enterprises for export in Vietnam are

facing fierce competition from countries with large seafood supplies with good farming technology such as Thailand, India, Indonesia, Ecuador

Fifth, export processing activities cause environmental pollution Sixth, with the specificity of activities in the field of import and

export, enterprises face many challenges from technical barriers, trade protection, tariff barriers along with regulations on control of food safety, concentration of residues in products and business policies in the territory of exporting countries

Seventh, inflation and exchange rate risks are factors that significantly

affect the operation of seafood processing enterprises for export in Vietnam

2.1.3 Organizational characteristics of the management apparatus

of enterprises

Each type of enterprise will organize an appropriate management

apparatus According to the summary of the number of seafood processing enterprises for export in Vietnam in 2020, Among 798 Vietnamese export

processing companies, there are 323 joint stock companies (accounting for 40.48%), 457 limited companies (accounting for 57.27%), 18 private enterprises (accounting for 2.26%)

2.2 CURRENT SITUATION OF QUALITY OF INFORMATON

IN FINANCIAL STATEMENTS OF SEAFOOD PROCESSING ENTERPRISES FOR EXPORT IN VIETNAM

2.2.1 Research design

2.2.1.1 Qualitative research methods

* Subjects of discussion in qualitative research

* Implementation process

* Discussion results

From the results of the qualitative research method, the research model

of the factors affecting the quality of information on the financial statements

of Vietnamese export processing enterprises is as follows: