INTRODUCTION1 Urgency of the thesis topic
Financial statements (FS) is a reporting system be established in accordance withstandards and accounting regimes applicable, reflects the economic information financialsummary of the financial situation, business results and cash flows of the business FS canbe considered a product of the process of preparing and providing information of anaccounting unit In particular, the disclosure and transparency of information on thefinancial statements of listed companies (listed companies) are interested from severalgroups different parties, not just the leadership now that the financial statements are alsoof particular concern from investors, the analysts, partners, regulatory authorories Disclosure, transparency is an effective means for the parties concerned get recognition,assess the true state of the business activities, especially financial status when makingeconomic decisions However, information on the financial statements are presented andpublished as to how to meet the needs of people using the still relatively large gap betweenreality and expectations But, as the transparency of information on the financialstatements depends on the quality of the process of creation, presentation and disclosure ofenterprises, this process is influenced by many factors both inside outside the enterprise.Therefore, at present in the world and Vietnam, this issue is of interest to manyresearchers
Some works in the world studying the perception of investors about the informationon the financial statements, the results showed that the majority of investors are evaluatingthe financial reporting supply critical information for decision making compared withother sources of information However, investors also responded that the disclosure andtransparency of the financial statements have been limited by the lack of publicinformation or public, but very difficult to understand.
In Vietnam, the stock market is growing, according to which the legal provisionsrelating increasingly perfect complement Particularly the provisions relating to theformulation, presentation and disclosure of information on the financial statements Theseregulations are finalized towards increasingly enhanced disclosure and transparency ofinformation However, some regulations are oriented not really specific, clear, no tightbinding legally This led to the ability to apply the law into practice in every business therecertain differences Besides, listed companies have consciously complying with the
Trang 2provisions of law in the preparation, presentation and published financial statements arestill not at the number of businesses do not pay attention to the disclosure and transparencyof information on SFH The information published is heavier on the form, just stop at thedisclosure requirements and pay little attention to transparency, is still common conditionssuch as: financial statements published promptly, metrics before and after auditing thedifference is relatively large; transactions with related parties have not been fully overs;indicators presented in the financial statements are incomplete or not the provisions ofaccounting standards and some related regulations; some items essential on financialstatements that have not been fully presented, detailed and clear to affect the ability toread out information as well as affect the confidence of the public to use the informationon the financial statements of the listed companies to make economic decisions.transactions with related parties have not been fully overs; indicators presented in thefinancial statements are incomplete or not the provisions of accounting standards and somerelated regulations; some items essential on financial statements that have not been fullypresented, detailed and clear to affect the ability to read out information as well as affectthe confidence of the public to use the information on the financial statements of the listedcompanies to make economic decisions transactions with related parties have not beenfully overs; indicators presented in the financial statements are incomplete or not theprovisions of accounting standards and some related regulations; some items essential onfinancial statements that have not been fully presented, detailed and clear to affect theability to read out information as well as affect the confidence of the public to use theinformation on the financial statements of the listed companies to make economicdecisions.
However, the disclosure and transparency of information on the financial statementsdo not easily evaluate and recognize So far, in Vietnam and in the world did not have anyformal set of indicators used to assess the transparency of information on the financialstatements of listed companies Therefore, the criteria for evaluating the level oftransparency of information on the financial statements of prior studies remains sporadic,inconsistent, sync.
To assess the transparency of information on the financial statements is not easy,but how to know which factors affect the transparency of information on the financialstatements is more difficult Because, just as understanding, mastery and control of factors
Trang 3affecting the transparency of information on SFH new help business managers, themanagement agency to identify the appropriate solutions to improve the transparency ofinformation on the financial statements Factors affecting the transparency of informationon the financial statements can arise from inside and outside, possibly from the listedcompanies as providers of information, from the auditing company in the development andreport on the financial statements of material misstatement, or from the relevant regulatoryenvironment, or due to any other factor.
In Vietnam so far, according to the understanding of the author, no formal study hasidentified factors, as well as to quantify the impact of these factors on the transparency ofinformation on financial statements listed companies on the stock market in terms ofpeople of people who provide information, although this issue is receiving attention notonly researchers but also from enterprise management, agency management, investors,audit firm… This is considered a method to control the transparency of information on thefinancial statements from the original.
From the above reasons, the author chooses the thesis topic: "Research on theinfluence of the factors on the transparency of information on the financial statements ofthe non-financial enterprises listed on stock market in the Viet Nam” with the desire tocontribute to clarifying issues interest, and is the basis for the authors proposerecommendations to improve the transparency of information on the financial statementsof the non-financial enterprises listed (DNPTCNY) on stock market in the Viet Nam.
2 Literature review and research gaps
2.1 The studies assessed the transparency of financial information and transparencyof information on the financial statements.
Assessing the overall transparency of information, transparency of information onparticular financial statement is a not an easy job So far, the studies on transparency infinancial reporting information can be divided in two different approaches as follows:
With the research that transparent information on financial statements synonymouswith the level of information disclosure, usually comes from the perspective of the use ofinformation especially from perceived by investors to assess transparency of informationon the financial statements In this study, to evaluate the level of transparency ofinformation, researchers oftenbased on the evaluation criteria of transparency oforganizations reputed as the OECD, the S & P, CIFAR Typical for this approach is the
Trang 4study ofRobert Bushman et al (2001); Aksu and Arman Kosedag Mine (2005);Chueng etal (2005); Yu-Chih Lin et al (2007) Tyeah the overview of the research above, shows thatwhile standing on the perspective of people who use the information to assess the level oftransparency of information on the financial statements focus only assess whether theannouncement information on the financial statements, rather than focus on evaluating thelevel of transparency of information in a comprehensive, fully led to the case is theinformation published, but not necessarily ensure transparency and vice versa with theinformation to ensure transparency but not published.
Some works have overarching approach and complete transparency of informationon the financial statements The authors suggest that transparent information on financialstatements is not only the level of disclosure and also including the quality of informationdisclosed Typical approach is the study ofTara Vishwanath and Daniel Kaufmann (2001);S.Kulzick Raymond (2003), Blanchet (2002) & Prickett (2002); Bert J Zarb (2006);Gheorghe, Mironela (2009); Ferdy van Beest and GB, 'Suzanne Boelens (2009), NguyenDinh Hung (2010);QI Xuan Dan LIU (2012); MarianaMan, Maria ciurea (2016); NguyenTrong Nguyen (2016) andPham Quoc Thuan (2016).Through a review of the research on,the transparency of information on the financial statements under review from the processof drafting, presentation and provides perspective information-information provider Withthis approach, the transparency of information on the financial statements are evaluatedthrough the basic features: Full, timely, reliable, comparable, understandable andaccessible.
2.2 The study of factors affecting the transparency of information on financestatement.
Through the review, may codify the elements affecting the transparency ofinformation on the group financial statements according to the following factors:
The factors of the financial characteristics
Scale enterprises; Financial leverage; Efficient use of assets; Profit; Collateral
The factors of the corporate governance
Scale of the board; The part-time between the Chairman and Managing Director;The proportion of independent directors; Supervisory Board; Board of Directors; internalcontrol system; The accountants
Trang 5The external factors
Independent audit; Legal environment of accounting, the disclosure rules, sanctions
2.3 Research gaps
From a review of the research projects and abroad So far there is not any formal setof criteria to assess the transparency of information on applicable financial statements arepublished in Vietnam in terms of people who provide information.
On the factors affecting the transparency of information on the financial statements,most of the research has focused on the study of the elements of the characteristics offinancial and governance characteristics of businesses to assess photos affect thetransparency of information on the financial statements, very few studies of factorsaffecting the preparation and publication of information on the financial statements
Research methodology: Few studies of factors affecting the transparency ofinformation in terms of persons providing information in quantitative methods.
Regarding the scope of the study, the majority of foreign works often research onnational scope Also works in Viet Nam just stopped in scope each transaction basis as thestock exchanges in Hanoi or Ho Chi Minh Stock Exchange.
3 Objectives of the studyGeneral objects
The general objective of the thesis: Studies of factors affecting the transparency ofinformation on the financial statements of enterprises nonfinancial listed (DNPTCNY) andpropose recommendations to improve the transparency of information on finance report ofDNPTCNY
Detail objects
- Formalized, complement and contribute to improving the theoretical basis oftransparent information on financial statements and factors affecting the transparency ofinformation on the financial statements from the perspective of people to provideinformation
- Determine the level of transparency of information on the financial statements andthe factors that influence as well as to quantify the impact of these factors to thetransparency of information on the financial statements of the DNPTCNY.
Trang 6- Propose a set of recommendations to improve the transparency of information onthe financial statements of listed companies DNPTCNY in the stock Viet Nam market.
(2) The reality of the level of transparency of information on financial statementsfrom listed companies and the impact of these factors to the transparency of informationon how the financial statements?
(3) Recommendations to improve the transparency of information on the financialstatements of listed companies in the stock market?
5 Object and scope of researchResearch subjects:
Transparent information on financial statements and factors affecting thetransparency of information on the financial statements DNPTCNY on Vietnam stockmarket.
Research scope:
Scope of space: The author conducted data collection and surveys at non-financial
firms listed (DNPTCNY) on Vietnam stock market The author does not perform a surveyof financial institutions such as banks, credit institutions, securities business, the insurancebusiness
Scope of time: Time studying the content related to the thesis was carried out from
Trang 7categorized approach to transparency of information on the financial statements andfactors affecting the transparency of information on the financial statements in twodirection access: (1) From the perspective of the user information and (2) the perspectiveof people who provide information.
Second, the thesis specifies the role and basis of the application of the theoreticalfoundation for the study of information transparency and factors affecting the transparencyof information on the financial statements.
Third, the research methods, the thesis use combines two research methods:qualitative and quantitative modeling study and verify the suitability of the modelresearch.
Practical contributions
First, based on stereotypes about the characteristics of the information on thefinancial statements of the organization elaborating and previous studies, the thesis hasbuilt a set of criteria to measure assess the level of transparency of information onfinancial statements of DNPTCNY the 5 characteristics (suitable, reliable, comparable,timely and convenient) with 21 criteria
Second, empirical research results show that, in terms of who provides informationthat 7/8 positively influencing factors with statistical significance to the transparency ofinformation on finance report with the 29 criteria
Third, on the basis of the results of quantitative research was presented in reality,the thesis also presents a number of recommendations and solutions to enhance thetransparency of information on the financial statements of the DNPTCNY.
Trang 8Chapter 3: Research Methodology
Chapter 4: Results of study on factors affecting the transparency of information onthe financial statements of non-financial companies listed on Vietnam's stock market
Chapter 5: A number of recommendations to improve the transparency ofinformation on financial report of non-financial companies listed on Vietnam's stockmarket
CHAPTER 1: RATIONALE OF TRANSPARENCY INFORMATION INFINANCIAL STATEMENTS AND FACTORS AFFECTING THETRANSPARENCY OF THE INFORMATION ON THE FINANCIAL
1.1.2 Information on financial statements
Standpoint of providing information, the information on the financial statements asa result of the process of creation, presentation and disclosure of the accounting unit,including financial information (assets, resources capital, revenues, expenses and cashflow) and non-financial information (opportunities, risks, staffing structure andcharacteristics of production and business activities, accounting policies )
1.1.3 Transparent information on financial statements
From the perspective of people providing information: Transparency of informationon financial reporting is a process for the preparation, presentation and announced publiclyand ensure the quality of all information related to the financial situation , results ofoperations, cash flows and other additional information on the financial statement
Trang 9disclosures to comply with the relevant legal regulations and meet the demand forinformation of the parties used.
1.2 The role of information transparency in financial report
Transparent information on financial statements very important role not only for theaudience but also to use information important for businesses themselves to provideinformation in making decisions related.
1.3 Criteria for evaluating and measuring the level of transparency ofinformation on finance report
1.3.1 Criteria for evaluating the level of transparency of information onfinance report
From the viewpoint of transparency of information on the financial statements interms of who provides refined, to offer criteria for evaluating the level of transparency ofinformation on the financial statements, the thesis will examine the transparency ofinformation on finance report according to two criteria: (1) the quality of information onfinancial statements and (2) the level of disclosure of information (access to information ofusers)
1.3.2 Measuring the level of transparency of information on finance report
In view of the supplier information, the level of transparency of information on thefinancial statements will be measured through the features: Full, as appropriate; reliable;timely; comparable; understandable and accessible.
1.4 Factors affecting the transparency of information on finance report
1.4.1 Some theoretical foundation
The fundamental theory can be used to study the transparency of information on the financial statements and factors affecting the transparency of information on the financial statements of listed companies, including: Theory of useful information; Theory of
information asymmetry; Representation theory; Behavior management theory; Institutional theory; Information processing theory.
1.4.2 Identify factors affecting the transparency of information on finance report
Trang 10Factors effect to transparency of information on the financial statements and theimpact of factors that govern the process of forming the financial statements andinformation on the characteristics representing the transparency information Such factorsinclude the factors within and outside the enterprise.
The elements within the enterprise, including: Internal control, the Board ofManagement, Board of Directors, Supervisory Board, the accounting staff.
Factors outside the enterprise, including: Independent Audit, Legal Environment.
CHAPTER CONCLUSIONS first
Chapter 1 of the thesis presented the basic contents related to the transparency ofinformation on the financial statements from the perspective of people providinginformation In particular, information on financial reporting processes are formed fromthe creation, presentation and disclosure of information Criteria for evaluating the level oftransparency of information on the quality of financial reporting information and publicinformation To measure the level of transparency on the financial statements, the thesis isbased on the quality characteristics of the information in the mold of the FASB, IASB andlegacy measurements from studies predecessor to develop an elevator measuring theproperties representing the transparency of information on the financial statements as: fullappropriate, timely, truthful, comparable, understandable, accessible.
CHAPTER 2: THE FINANCIAL STATEMENTS OF NON-FINANCIALENTERPRISES LISTED ON THE STOCK MARKET IN VIETNAM2.1 Listed enterprises and non-financial enterprises listed
2.1.1 Listed enterprises
2.1.1.1 Overview of listed enterprises
2.1.1.2 Features of corporate governance (CG) of the listed companies
2.1.2 Non-financial enterprises listed
2.1.2.1 Essential non-financial enterprises listed
2.1.2.2 Characteristics of non-financial enterprises listed
2.2 Overview of financial statements of non-financial firms listed
2.2.1 System of Financial Statement
Financial report system, including:
(1) Accounting balance sheet(2) Income statement
Trang 11(3) Statements of cash flows(4) Notes to Financial Statements
2.2.2 Features of the financial statements of non-financial firms listed
- Financial Statement of the DNPTCNY require high reliability and very sensitive.- Financial Statement of the DNPTCNY track and reflect many specific indicators.- Financial statements reflect the volume DNPTCNY large and complex operations.- DNPTCNY financial statements must comply with the more stringent regulationsof the stock market, which require mandatory audit.
2.2.3 Provisions on the preparation, presentation and disclosure of informationon the financial statements of Vietnam DNPTCNY in the stock market
2.2.3.1 Regulations on the preparation and presentation of financial statements2.2.3.2 Regulations on information disclosure on the Stock Exchange of DNPTCNY
CONCLUSION CHAPTER 2
In Chapter 2, the NCS had generalized the content related to the financial statementsof listed companies on the stock market in Viet Nam, including the content of the concept,the characteristics of the DNPTCNY and characteristics of the financial statements of theDNPTCNY on the stock market.
Besides, the thesis also presents the legal regulations on the preparation,presentation and disclosure of information on financial statements and regulations oncorporate governance of listed companies on the stock market of Vietnam The contents ofchapter 2 is one of the legal bases for the construction of criteria measuring the level oftransparency of information on the financial statements as well as identifying factorsaffecting the level of transparency of information on the financial statements of theDNPTCNY in the stock market in the chapter 3.
Trang 12CHAPTER 3
RESEARCH METHODS3.1 Research design
Interviewing with Experts 2nd draft scales