5.1. Conclusion
The thesis draws following conclusions:
5.1.1. Research objectives and hypotheses
The thesis has finalized the testing of the following hypotheses:
Table 5.1: Synthesis of tested hypotheses
Hypothesis Content Reject/Accept
H1
There is a link between time of financial statement publication and CAAR. Managers strategize on information publication, meaning that bad news to be published late and good news to be published early.
Accept
H2 There is a negative link between firm size and stock return when financial statements are published
Accept
H3 There is a positive link between book to market ratio and stock return when financial statements are published
Accept
H4 There is a positive link between return momentum and stock momentum when financial statements are published
Does not accept H5
There is a positive link between transaction volume measured in monetary unit and stock return when financial statements are published
Does not accept
H6 There is a negative link between discretionary accruals and stock
returns when financial statements are published Accept H7 There is a positive link between auditor‘s size and stock return
when financial statements are published
Does not accept H8
There is a positive link between standardized unexpected earnings and stock returns when financial statements are published
Accept Source: Author’s summary 5.1.2. Research results
Domestic and foreign studies have shown that information on financial reports is considered by managers, investors and regulators as one of the sources of official and important information. Based on the study of the relationship between publication time and financial factors, the dissertation has dealt with the following issues:
Firstly, the thesis has provided the theoretical foundations of efficient market, agency theory, behavioral finance theory, information concepts, financial information and publication time. In addition, the dissertation collects evidence from domestic and international research on the impact of time and information on the published financial statements.
Secondly, the thesis has synthetic the method of event research (with regard to the time of financial statement disclosure), to study the stock return of each listed firm with late and early publication, for the whole sample and each individual industry.
+ In addition, the thesis has proposed the research hypotheses, collect data to perform regression analysis as well as test relevant hypothesess.
+ The dissertation has systematized the theoretical basis for quantitative research methods to be conducted for this study.
Thirdly, the dissertation has conducted research on the impact of timing of financial statements disclosure and the financial factors on stock returns.
Research has addressed the following issues:
(a) The timing of financial statement disclosure has an impact on abnormal stock returns of listed firms and executives of listed firms do implement disclosure strategy, ie, good information from the financial statements is released early and bad news is released late.
+ By using the event method and the adjusted market return model according to Brown and Warner (1985), Hedge and McDermott (2003), Denis et al. (2003), Gregoriou and
Ioannidis (2006), Nguyen (2010) during 181 business days around the date of publication of income, the following results are obtained:
For good news CAAR is highest on day -5 and + 5, and bad news CAAR is highest on day -5. If firms publish financial statements early, CAAR in [-5,0] is positive, regardless of bad news or good news, and this window also has high t-statistics and strong significance. On the other hand, the market responds negatively right after receiving the bad news (day 0). CAAR tends to be higher in short window [-5,0] and in long-term window [-90,0] for both good and bad news in the periods prior to financial statement publication.
For industry: This study employs Pooled OLS (from Bagnoli (2002)) to examine the link for each industry in cases of early, late and on time publication compared to last year publication.
The findings show that the time firms publish financial statements late has impacted CAAR the most and statistically significant for 2 industries which are Consumer services and Consumer goods.
There is no evidence that firms that publish early have significant impact on CAAR. In case of on time publication, firms that deliver bad news are subject to punishment from market, especially Industrials, Consumer services.
There is no evidence showing the impact of time of financial statement publication on CAAR for firms in industries like Energy & Gas and Technology.
(b) The dissertation, using three regression models Pooled OLS, FEM, REM, has identified and quantified the impact of information disclosed on the financial reports on stock returns in Vietnam. Specifically, factors such as company size, book to market value , standardized unexpected earnings, discretionary accruals significantly impact stock returns. In addition, the study cannot find statistical evidence about the relationship between stock return and transaction volume in cash, the momentum of stock return and the size of the audit firm.
Fourthly, the thesis has made some recommendations related to the timing of publication of financial statements and financial information on financial statements, thereby enhancing the stock returns of listed firms.
+ Based on the results of regression and discussion of research results, the thesis proposes 3 groups of recommendations for the following stakeholders:
* Investors:
When it comes to the time of financial statement disclosure of listed firms in short and long term, investors should pay attention to firms in industries of Consumer Services and Consumer Goods when late financial statements are released. The information disclosed on the financial statements, such as book to market value, company size, abnormal income fluctuations, especially discretionary accruals, etc.
* Listed companies:
When it comes to the time of financial statement disclosure, the disclosure should be in accordance with the State regulations on disclosure, ensure good grasp and strict management of internal information, timely auditing of financial statements, create prestige and trust for investors as well as the authorities. It is not always easy to expand the company to garner high stock returns, and instead firms need to effectively manage the existing resources in the current economic situation, focus on public relations (IR), corporate social responsibility, ...
* The authorities: need to have separate regulation on information disclosure for listed firms with high market value, and impose strict delisting on firms that turn in financial statements late...
5.2 Recommendations for future research
The thesis points out the limitations of the study and suggests directions for future research, research sample and other factors affecting the stock market.
CONCLUSION CHAPTER 5
In Chapter 5, the thesis concludes and proposes recommendations to investors, managers of listed firms and state authorities to enhance stock returns, step by step improve the transparency of stock market, contribute to the effective operation of stock market. The thesis also outlines the new research contributions and presents the limitations of the research and further research.