Các nhân tố tác động đến áp dụng chuẩn mực kế toán quốc tế (IAS IFRS) tại việt nam – nghiên cứu ở phạm vi quốc gia và doanh nghiệp tt tiếng anh

UNIVERSITY OF ECONOMICS HO CHI MINH CITY ---- ---- By LE TRAN HANH PHUONG FACTORS AFFECT THE ADOPTION OF THE INTERNATIONAL ACCOUNTING STANDARDS IAS/IFRS IN VIETNAM – RESEARCH ON NATIO

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

By

LE TRAN HANH PHUONG

FACTORS AFFECT THE ADOPTION OF THE INTERNATIONAL ACCOUNTING STANDARDS (IAS/IFRS) IN VIETNAM – RESEARCH ON NATIONAL AND COMPANY LEVEL

MAJOR: ACCOUNTING

CODE: 9340301

SUMMARY OF PHD THESIS

PROFESSIONAL ADVISOR Asso.Prof., PhD HA XUAN THACH

HO CHI MINH CITY - 2019

Thesis is prepared at: University of Economics Ho Chi Minh City

Professional advisor: Asso.Prof., PhD Ha Xuan Thach

Critic 1:

Critic 2:

Critic 3:

The thesis will be presented to the Thesis committee at:

At …, the day month year

The thesis can be found in Library:

INTRODUCTION

1 Research ideal

In the bias of market globalization, international accounting and securities organizations have begun the harmonization of accounting standards to promote investment, increase economic integration between nations and area It is inevitable of using “common accounting language” to help ensuring transparency, clarity, comparability across the world, and greater utility to facilitate analysts, managers, and investors in making decisions Most countries have adopted The International Accounting Standards (IAS/IFRS), but Vietnam has not yet announced a specific schedule or commitment on the adoption of IAS/IFRS The Ministry of Finance have been building a roadmap for accounting and auditing in Vietnam to 2020 in harmonization with international standards The updating and promulgation of new accounting standards and regulations related

to accounting systems show that the efforts of the Ministry of Finance to prepare for the implementation of adoption IAS/IFRS in the future to be favorable and consistent (Tran Quoc Thinh, 2016) It is imperative for Vietnamese enterprises to adopt The International Accounting Standards (IAS/IFRS) in order to increase the competition in the world market The Ministry of Finance has planned to adopt some simple and appropriate IAS/IFRS for piloting in several large companies (LVC) and units with public interests The process of adoption The International Accounting Standards should be researched carefully and the appropriate roadmap for each type of enterprise in the economy

International studies have researched the adoption of IAS/IFRS from various perspectives provides a fairly comprehensive picture of the level of harmonization between national accounting standards and the International Accounting Standards (Ho Xuan Thuy, 2016) The study focused mainly on developed countries, while studies on developing countries with characteristics similar to Vietnam are still relatively limited The in-country studies focused on the convergence of VAS with IAS/IFRS, benefits and challenges in adoption IAS/IFRS, assessing the potential and proposing directions for adoption IAS/IFRS in Vietnam The empirical studies on the factors that affect the adoption of IAS/IFRS in Vietnam are necessary but have not been properly addressed Researches in both the macro and micro factors that affects the adoption of IAS/IFRS have been done in few countries, especially it is so limited in Vietnam Two problems need to be focused: in the national level, is Vietnam eligible for IAS/IFRS adoption? If Vietnam decides to adop IAS/IFRS, can the enterprise do? This has prompted the author to research the factors affect the adoption of IAS/IFRS in Vietnam - national and company research Thus, providing a synchronous and timely solution from the Government State management, associations and professional organizations, training institutions and enterprises The subject has

a great scientific and practical significance to provide solution that is appropriate to the current Vietnamese

characteristics - both nationally and company Therefore, the author decided to implement the topic “Factors

affect the adoption of The International Accounting Standards (IAS/IFRS) in Vietnam – Research on national and company level”

2 Research objectives and Research questions

- Research objectives: The general objective of this thesis is to identify and measure the factors affect

the adoption of The International Accounting Standards (IAS/IFRS) in Vietnam – Research on national and company level In order to solve the general objective, the thesis needs to address two main objectives:

+ Identify and measure the macro factors that affect the adoption of The International Accounting Standards (IAS/IFRS) – Research on national level

+ Identify and measure the macro factors that affect the adoption of The International Accounting Standards (IAS/IFRS) in Vietnam – Research on company level

- Research questions:

(1) What are macro factors that affect of the adoption of The International Accounting Standards (IAS/IFRS) at national level and How are these factors affected?

(2) What are micro factors that affect of the adoption of The International Accounting Standards (IAS/IFRS)

in Vietnam at company level and How are these factors affected?

To clarify the content of the research question (2), the author raises two questions:

(2a) What are micro factors on the adoption of IAS/IFRS in listed large companies in Vietnam and How are these factors affected?

(2b) What are micro factors on the adoption of IAS/IFRS in unlisted large companies in Vietnam and How are these factors affected?

3 Research subjects and scopes

- Research subjects: Factors affect the adoption of The International Accounting Standards (IAS/IFRS)

in Vietnam – Research on national and company level

+ Period research: data is collected in 2016

+ Research Limitation:

• The thesis has not focused in the content of each IAS/IFRS

• The thesis has not investigated the decision to adopt IAS/IFRS to the national accounting system

• The thesis has not researched on SMEs in Vietnam

4 Research methodology

The author uses mixture of qualitative and quantitative methods in this thesis

The thesis used a combination of research methodologies to solve the objectives in the order that the qualitative methodology was first adopted and then quantitative methods to re-examine the research model:

- The qualitative research helps identify the factors that affect the adoption of IAS/IFRS in Vietnam Through the literature review processing, the author used the GT method for in-depth interviews with experts Expert survey helped to identify the macro and micro factors affecting IAS/IFRS adoption in Vietnam at national and company level, provide hypothesis and research model

- The quantitative methods help to measure the impact of these factors on the adoption of IAS/IFRS in Vietnam - national and company research The author collects primary and secondary data on the logit regression model

The research process of thesis as below:

of code law like Vietnam

+ Building a model of micro factors and the impaction of these factors that affect the adoption of International accounting standards (IAS/IFRS) in large companies of Vietnam The thesis implements new micro factors The results are references to the following relevant studies

- Empirical implications:

+ The Vietnamese Ministry of Finance, Government management departments: Through policy implications from the research results of the thesis, The Vietnamese Ministry of Finance,

Conclusion and Recommendation

Research results and discussion at the

national level

Research results and discussion at the

company level

Mixed method

- The qualitative research: (GT) Through a

survey of 15 experts with semi-structured

questionnaires

- The quantitative methods: the logit

regression model from secondary data of

145 countries

Mixed method

- The qualitative research: (GT) Through a survey of 15 experts with semi-structured questionnaires

- The quantitative methods: the logit regression model from data of audited financial statements

Government management departments have issued policies to influence the macro factors to facilitate the adoption of The International Accounting Standards in Vietnam

+ The Association, the institutes, institutions, universities specialized in accounting and auditing: The thesis is research paper of micro and macro factors affecting the adoption of The International Accounting Standards in specific conditions in Vietnam This document is comparable to previous studies to develop current accounting research in the adoption of The International Accounting Standards in countries, especially developing countries with similar conditions with Vietnam

+ Large companies in Vietnam: Identify the micro factors affecting the adoption of The International Accounting Standards, which provide management implications; facilitate the adoption of The International Accounting Standards in accounting systems; gain benefits from the process of economic integration

6 Thesis structure

The thesis is divided in five chapters Introduction; Chapter 1– Literature review; Chapter 2–Theoretical basis; Chapter 3–Research method, Results and discussion on macro factors that affect the adoption of The International Accounting Standards in Vietnam – Research at national level; Chapter 4– Research method, Results and discussion on micro factors that affect the adoption of The International Accounting Standards in Vietnam – Research at company level; Chapter 5 – Conclusion and Recommendation

CHAPTER 1 – LITERATURE REVIEW 1.1 Researches on The International Accounting Standards in the world

1.1.1 Studies support the adopton of IAS/IFRS to national accounting standards

1.1.1.1 Research on the benefits of adopting IAS/IFRS in countries

Researches proved many benefits for countries as they adoped IAS/IFRS (Appendix 1.1):

The development of global accounting and taxonomy has been used to improve the quality of information

on financial statements such as comparability, transparency, timeliness and relevance Therefore, many countries intend to adopt IAS IFRS or IFRS converge with IAS/IFRS (Larson and Street, 2004; Daske and Gebhardt, 2011; Aisbitt, 2006; Mary E Barth et al, 2008; Vera P, 2014; Phan Thi Hong Duc, Nguyen Thanh

Ha, Nguyen Thi Phuoc, 2016;)

To attract capital and enhance business cooperation opportunities, increase competition and integrate into the world market The company significantly reduced the cost of issuing bonds, raise capital due to higher credit index (Saudagaran & Diga, 2003; Young and Guenther, 2003; Phan Thi Hong Duc, 2013; Tran Quoc Thinh, 2016…)

Improving business efficiency, improve the quality of management and information; Accuracy of forecasts

is increasing (Ashbaugh and Pincus, 2001); Facilitate comparison between the companies operating in the same market (Whittington, 2005; Mai Thi Hoang Minh, Tran Ngoc Hung, Bui Quang Hung, 2016), Help improve the quality of accounting and internal control system of the enterprise (Christopher W Nobes and Christian Stadler, 2014)

Reflecting the value of the enterprise is more reasonable Horton and Serafeim (2010) showed that adopton

of IAS/IFRS increased the value of companies in the UK, France and Italy Aubert, Grudnitski (2011) identify differences in ROA of the companies by IAS/IFRS and LGAAP in Belgium, Finland, France, Italy, Netherlands, Sweden, Switzerland, and the UK

Helping countries save money on drafting, promulgating technical documents and quickly integrating into IAS/IFRS (Leuz, 2003; Daske et al, 2008,); Improve the quality of human resources in accounting, auditing and finance (E T De George, Xi Li, L Shivakumar, 2016)

1.1.1.2 Research on the implications of adopting IAS/IFRS

Impact on Assets and Equity: Most studies document the positive impact of adopting IAS/IFRS on assets and equity in the Corporate Financial Statements, such as: Aisbitt (2006), Hung & Subramanyam (2007), Lenormand and Touchais (2009), Joseph, Ran and Haim (2010) … However, some studies suggest that the adoption of IAS/IFRS negatively impacts equity and equity, such as Jermakowicz (2004), Marchal et al (2007), Christensen et al (2015), …

Impact on Profit Management Behavior: Most studies have documented the positive impact of adopting IAS/IFRS on corporate profit-taking behavior and at the same time recording losses in a timelier manner: Barth

et al, (2011), Susana C G., Cristina F G J I J., José A L Gadea (2010), …

Impact on the quality of financial accounting information of countries: Chamisa (2000), Armstrong et al (2010), Shu-hsing Wu et al (2014), … However, some studies have shown that the adoption and compliance

of IAS/IFRS of different businesses is different, so the quality of information on the explanations is very different such as Verriest et al (2013), Achilleas Psaroulis (2011), …

Impact on stakeholders such as investors, auditors, banks Investors support the process of adopting IAS/IFRS when they are aware of the net profit earned after the adoption of IAS/IFRS (Mary E B., Wayne

R L., Mark H L., 2008; Vazakides,…) IAS/IFRS adoption has a positive impact on banks by increasing the quality of information after the introduction of IAS/IFRS or the increase in auditing quality (Kishan, 2014) Impact on debt markets of countries: in particular capital structure and cost of debt of the company (Tran Thi Thanh Hai, 2015; Naranjo et al., 2014; Florou and Kosi, 2015; )

1.1.2 Studies does not support the adop of IAS/IFRS

Each nation's environmental difference is a barrier to the adoption of IAS/IFRS: lack of political will, rooted

in local culture, and strong national will (Larson and Street, 2004; Callao et al., 2007; Phan Thi Hong Duc, Nguyen Thanh Ha, Nguyen Thi Phuoc, 2016; )

Difficulties of the enterprise when adop IAS/IFRS due to complex nature of the standard, lack of guidance when adopting reality, close link between financial statement and tax, frequent changes of IAS/IFRS, lack of knowledge of employee (Larson and Street, 2004; Ihab A and Nedal S., 2013; ) Cost-benefit analysis for changing reporting regimes is controlled by environmental factors Conversion costs are a concern (Hail et al.,

2010, Le Van Tan, 2016;)

Difficulties from resources for IAS/IFRS adoption, especially in developing countries: Human resources and accounting systems in developed countries are not strong enough to adop IAS/IFRS (Lasmin, 2011); It is

difficult to adopt the ability to evaluate and judge professionally (Cătălina F P., 2016); it is not synchronized, lack of current legal guidance if IAS/IFRS adoption (Dao Thi Loan, 2016)

Protecting Investors: IAS/IFRS adoption accepts that regulators are concerned about uncontrolled accounting information, not protection of investors (Ehoff and Dahli, 2014; Ball, 2006; )

Costs for IAS/IFRS adoption: adoption IAS/IFRS in company requires time, effort and cost similar to previous standards building or even more (Ashbaugh and Pincus, 2001; Bae et al., 2008; Callao et al., 2007; )

IT system: Companies need to build IT systems when adopting IAS/IFRS to support the processing, collection and presentation of financial information from department and outside (Pham Quoc Thuan, 2016)

1.2 A review of factors affecting the adoption of IAS/IFRS

1.2.1 Macro factors affect the adoption of IAS/IFRS

The adoption of IAS/IFRS in the country is not the same due to macro factors: culture, economy, capital markets, education, foreign operations, law, politics …

In the process of formation and development, countries and regions have established and shaped their own characteristics These traits can basically come from the business, legal, and cultural environment It is the factors from the environment which have influenced the accounting system of countries and created certain differences, forming diversity and richness in international accounting (Tymothy and Hector, 2007; Alia and Branson, 2010, Nguyen Thi Thu Phuong, 2014; ) Diversity in national accounting comes from the economy (Cooke and Wallace, 1990; Larson, 1993; Tran Quoc Thinh, 2016;.), politicial (Kossentini and Othman, 2011; Baker et al., 2007; ), law (Kantor et al., 1995) And taxes, business, occupation, and environmental factors are always intertwined and intertwined (Choi and Meek, 2011; Kim and David, 2009; )

1.2.2 Micro factors affect the adoption of IAS/IFRS

Most studies of micro factors affect the adoption of IAS/IFRS in enterprises conducted in specific countries The authors find that the adoption is mainly determined by the size of the company together with the opinion

of the auditors such as: Trembley (1989), Leuz and Verrechia (2000), Affes and Callimaci (2007) Dumontier and Raffournier (1998), Odia (2016) has demonstrated the relevance of IFRS voluntary adoption to debt and performance ratios Vinícius Simmer de Lima et al (2018) given that economic efficiency in accounting convergence in a developing economy, the results indicate that the promotion of the enterprise level is an important driver of compliance with IAS/IFRS

1.2.3 Mixed studies on macro and micro factors affecting the adoption of IAS/IFRS

The study of the macro and micro factors affecting the adoption of IAS/IFRS in the world is quite limited

A typical case study of the combined impact of micro and macro factors at the same time in the model to the IAS/IFRS such as: Kolsi and Zehri (2013), Masoud (2014),

A composite study of factors affecting the adoption of IAS/IFRS in countries at Appendix 1.1 and 1.2

1.3 Review previous studies and Identification of research gap

1.3.1 Review previous studies

Most of the research focused on understanding the status of developed countries when adopting IAS/IFRS such as EU, Australia, Japan, etc These countries have financial markets and regulatory systems that have developed Recently, some of the authors investigated in depth the factors that affect the adoption of IAS/IFRS

in transition economies (Rahman et al., 2005) Few studies investigate the adoption of IAS/IFRS in countries with similar economic, cultural and social characteristics Therefore, the process of adopting IAS/IFRS in Vietnam should be considered

Most of the studies focused on macro factors affecting the adoption of IAS/IFRS in countries, with particular focus on developed countries The rest of the research is related to microscopic factors affecting the adoption of IAS/IFRS Research samples are usually listed companies, businesses with public interests For the past five years, the author has begun to look at the impact of micro factors on the adoption of IAS/IFRS in emerging countries However, the research is still limited, especially in relation to developing countries in the ASEAN region which have similar characteristics to Vietnam

Research in Vietnam to date has not fully addressed the adoption of IAS/IFRS The authors mainly use qualitative methods from literature review, situational assessment and VAS convergence With IAS/IFRS, the difficulty in adopting IAS/IFRS in Vietnam, the need and adoption of IAS/IFRS, and the proposed approach and roadmap for Vietnam (Le Vu Truong, Dinh Minh Tuan, 2016) The authors have not demonstrated specifically how the quantitative and micro, macro factors will affect the adoption of IAS/IFRS in Vietnam This complex issue should be considered with caution Empirical factors affecting the adoption of IAS/IFRS

in Vietnam are mainly focused on macro factors (Tran Quoc Thinh, 2016; Duong Hoang Ngoc Khue, Nguyen Thi Ngoc Oanh, 2016; Nguyen Thi Thu Phuong, 2014) Empirical research on micro factors affecting the adoption of IAS/IFRS in Vietnam is limited (Ha Xuan Thach, Nguyen Ngoc Hiep, 2017) Particular attention that the researches on both macro and micro factors affecting of IAS/IFRS in Vietnam was not implemented

1.3.2 Identification of research gap

The above overview shows that Vietnam has to adop IAS/IFRS as an indispensable trend However, the roadmap, method of adopting IAS/IFRS in Vietnam has not been clearly defined and informed Starting from this situation, researching the factors affecting the adoption of IAS/IFRS is very necessary and has deep scientific and practical significance, thus providing an orientation to develop appropriate solutions From this

perspective, the author selects and performs the topic “Factors affect the adoption of The International

Accounting Standards (IAS/IFRS) in Vietnam – Research on national and company level”

Conclusion chapter 1

CHATER 2: THEORETICAL BASIS 2.1 Overview of The International Accounting Standards (IAS/IFRS)

2.1.1 Brief history of IAS/IFRS formation

In the years 1973 - 2000, IAS/IFRS published accounting principles and guidelines Since 2001, IASB, IOSCO and accounting agencies around the world have formed and developed IAS (International Accounting Standards), including International Financial Reporting Standards (IFRS)

2.1.1.1 Stage formation (from 1973 to 1987)

The IASC issued 26 IAS/IFRS to narrow the differences between countries' accounting by adopting the accounting standard to allow for more flexible options to suit country conditions (Deloitte Touche, 2002-2007) IASC did not respond to user information, lacking detailed regulations on financial statements Allowing multiple options does not guarantee comparability of financial statements

2.1.1.2 Adjustment period (from 1987 to 1993)

In 1987, IOSCO requested the IASC to renew its accounting standards on the basis of: removing multiple options; Ensure full standards of detail as well as requirements on financial statement presentation By 1993,

10 of the 31 IASs had been adjusted Then the IASC agreed with IOSCO to develop IASCO's IAS/IFRS and recommended the stock market to be used

The development phase marks two important processes: the period 1993 - 2001 marked the IASC reengineering process for the establishment of the IASB, the period from 2001 to the present is the process of accelerating the development and adopting IAS/IFRS globally The adoption of IAS/IFRS has changed the way financial statement measurement, recording and presentation help the company to be accepted on the world stock market because of improved quality of information provided to investors, increasing the ability Comparisons of financial information, reduced uncertainty in investment, increased market efficiency, reduced investment risk and reduced capital costs, helped expand global stock markets

2.1.2 Content of IAS/IFRS

IAS/IFRS was developed in the direction of capital markets and the formulation of financial statements focused on corporate relations with investors and information on the capital market State agencies still use financial statements as economic activity, financial statements for the purpose of investors IASB consists of three main parts: IFRS Framework, IAS/IFRS and IAS/IFRS Interpretation Guidelines and IAS/IFRS Interpretation Guidelines (IFRIC/SIC) developed by IFRIC public opinion and then submitted to the IASB Board for review and approval as official guidelines (IFRS Foundation, 2012)

2.2 Method and experience of adopting IAS/IFRS in countries

2.2.1 Method of adopting IAS/IFRS in countries

2.2.1.1 Method 1: Recognition of IAS/IFRS is the national accounting standard (Big Bang

2.2.1.2 Method 2: Approve each IAS/IFRS (Convergence Approach)

This method of permitting changes in IAS/IFRS will be considered for individual approval of each standard The country chooses to adop the IAS/IFRS at the level that it considers appropriate, thereby transferring the content of each IAS/IFRS to the national accounting standard

The limitation of this approach is to reduce the comparability of the financial statements or to keep up with changes in actual business operations in the current market mechanism This is the transitional solution that the country will then move on to adopting method 1

2.2.2 Experience of adopting IAS/IFRS of countries around the world

The thesis presented the variety of methods as well as the experience of adopting IAS/IFRS in countries in terms of developed and developing countries, using IAS/IFRS accreditation as standards National accounting

or approval of each standard, support and opposition to the adoption of IAS/IFRS Selected developed countries are the EU, Australia, USA and Korea (section 2.2.2.1) Selected developing countries are China, Malaysia, and Thailand This is an Asian country, with relatively similar economic conditions (section 2.2.2.2)

As a result, lessons learned from the adoption of IAS/IFRS have been implemented in countries because of the benefits gained from this process However, each country needs to overcome challenges in adopting IAS/IFRS, and learn from experience to develop the most appropriate and effective roadmap (section 2.2.2.3)

2.3 Background theories

The thesis presented the backgrounds theories: Agency theory, Corporate Governance theory, Signal theory, Institutional theory and Political theory

2.4 Factors affecting the adoption of IAS/IFRS

2.4.1 The macro factors

The PESTEL model describes the macro environment as "broad, objective and direct impact factors that are organized and analyzed into six dimensions: political, economic, cultural, technical, and frameworks legal and environmental” Many studies proved the importance of these factor to the adoption of IAS/IFRS The

author examines the impact of macro variables on the IAS/IFRS adoption: culture, legal systems, education, politics, foreign operations, economic growth and capital markets (Appendix 2.3)

2.4.2 The micro factors

Micro environment is the near or direct environment of the company and is very special by being unique to every company or industry This environment directly impacts on the company The dissertation examines the impact of a number of micro factors including: leverage, enterprise size, profitability, auditing quality, impact

on IAS/IFRS adoption (Appendix 2.3)

Conclusion chapter 2

CHAPTER 3: RESEARCH METHOD, RESULTS AND DISCUSSION ON MACRO FACTORS

THAT AFFECT THE ADOPTION OF THE INTERNATIONAL ACCOUNTING

STANDARDS – RESEARCH AT NATIONAL LEVEL 3.1 Select the appropriate research method

3.1.1 Determine the research method

The thesis used a composite mix design that are presented in Figure 3.1

3.1.2 Research process

Step 1: Document overview, defining theoretical foundations and background theories for research

Step 2: Qualitative research methods

The thesis used GT (Grounded Theory) for interviewing 06 experts (Appendix 3.1) by semi-structured questions Expert Interview Questions (Appendix 3.2) identifies macro factors as the basis for a formal survey

of 15 experts (Appendix 3.3)

Step 3: Quantitative research methods

The thesis examines and quantifies the relationship between factors through the verification tool and the logit regression model Secondary data collected from www.iasplus.com, World Development Indicators

(WDI) at Appendix 3.5

Step 4: Research results, Discussion and policy implications

The research process is described in Figure 3.2

3.2 The qualitative research

3.2.1 The qualitative research process

GT is a methodology for constructing theories based on systematic data collection and analysis, and qualitative research processes are shown in Figure 3.3

3.2.1.1 Setting up the survey

Step 1: Expert interviews to build the main survey questions (Appendix 3.2)

Step 2: Survey experts (Appendix 3.3)

3.2.1.2.S ample selection

Step 1: Select the sample in the interview

The author selected 06 interview experts including: 03 lecturers and 03 accountants in companies

(Appendix 3.1)

Step 2: Select the sample in the expert survey

After determining the survey, the author sampled for the purpose of the GT method

3.2.1.3 Data collection

The data collection tool is a surveys (Appendix 3.3)

3.2.1.4 Analysis of data

Step 1: Data analysis for expert interviews

Step 2: Data analysis for expert survey

3.2.2 The research model expected

Based on the theory of background combined with expert surveys, the author proposes a research model

Hypothesis H3 – Countries have capital markets are more likely to adopt IAS/IFRS

Hypothesis H4 – The higher level of the educational system of country, the higher the country will adopt IAS/IFRS

Hypothesis H5 – Countries have higher level of opening foreign listing are more likely to adopt IAS/IFRS Hypothesis H6 - Countries have a "common law" legal system are more likely to adopt IAS/IFRS than others

Hypothesis H7 - Countries with higher democratic political systems tend to adopt IAS/IFRS

3.3 Quantitative research

3.3.1 Quantitative research procedures

Quantitative research procedures has presented at Diagram 3.5

3.3.2 Model research

LOGIT [IAS/IFRS =1] = α0 + α1*VH + α2*TT + α3*TV + α4*GD + α5*NN + α6*PL + α7*CT +ε (M1) Dependent variable is a dummy variable, assuming a value of 1 if the country adopts IAS/IFRS and a value

of 0 if the country does not adopt IAS/IFRS until 2016

Independent variable: Culture VH Economic growth TT Capital markets TV Educational system GD Foreign operation NN Legal system PL Political system CT

Parameters: α0, α1, α2, …, αn Error: ε

3.3.3 Determine the scale

Measurement scale is presented at Appendix 3.9

3.3.4 Select sample survey

The number of macro variables is 07 variables, the number of independent variables is 1 variable The official sample size of n = 145 is consistent The author selects non-probable samples because the constraint

in the secondary data collection process for information concerning the country is not favorable Samples are conveniently sampled because of the convenience of data collection and objective assurance in the data collection of non-probability sampling

3.3.5 Data collection

The thesis collect data of countries from website www.iasplus.com/country/country.htm After considering the possibility of data collection, the author selected 145 countries to be classified into two groups: countries that have adoped IAS/IFRS (with or without modification) and group of countries by the end of 2016, do not adop IAS/IFRS Relevant information is collected primarily from the World Bank - World Development Indicators (WDI) List of these countries presented at Appendix 3.5 Source of data collection factors presented

at Appendix 3.9

3.3.6 Data analysis

3.3.6.1 Descriptive statistics analysis

Descriptive statistics analysis with quantitative macro variables in the model KT, GD, NN, CT Descriptive statistics analysis with qualitative macro variables VH, TV, PL