1
INTRODUCTION
1. Urgency of the thesis topic
Financial statements (FS) is a reporting system be established in accordance with
standards and accounting regimes applicable, reflects the economic information financial
summary of the financial situation, business results and cash flows of the business. FS can
be considered a product of the process of preparing and providing information of an
accounting unit. In particular, the disclosure and transparency of information on the
financial statements of listed companies (listed companies) are interested from several
groups different parties, not just the leadership now that the financial statements are also
of 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 making
economic decisions. However, information on the financial statements are presented and
published as to how to meet the needs of people using the still relatively large gap between
reality and expectations. But, as the transparency of information on the financial
statements depends on the quality of the process of creation, presentation and disclosure of
enterprises, 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 many
researchers.
Some works in the world studying the perception of investors about the information
on the financial statements, the results showed that the majority of investors are evaluating
the financial reporting supply critical information for decision making compared with
other sources of information. However, investors also responded that the disclosure and
transparency of the financial statements have been limited by the lack of public
information or public, but very difficult to understand.
In Vietnam, the stock market is growing, according to which the legal provisions
relating increasingly perfect complement. Particularly the provisions relating to the
formulation, presentation and disclosure of information on the financial statements. These
regulations are finalized towards increasingly enhanced disclosure and transparency of
information. However, some regulations are oriented not really specific, clear, no tight
binding legally. This led to the ability to apply the law into practice in every business there
2
certain differences. Besides, listed companies have consciously complying with the
provisions of law in the preparation, presentation and published financial statements are
still not at the number of businesses do not pay attention to the disclosure and transparency
of information on SFH. The information published is heavier on the form, just stop at the
disclosure requirements and pay little attention to transparency, is still common conditions
such as: financial statements published promptly, metrics before and after auditing the
difference is relatively large; transactions with related parties have not been fully overs;
indicators presented in the financial statements are incomplete or not the provisions of
accounting standards and some related regulations; some items essential on financial
statements that have not been fully presented, detailed and clear ... to affect the ability to
read out information as well as affect the confidence of the public to use the information
on the financial statements of the listed companies to make economic decisions.
transactions with related parties have not been fully overs; indicators presented in the
financial statements are incomplete or not the provisions of accounting standards and some
related regulations; some items essential on financial statements that have not been fully
presented, detailed and clear ... to affect the ability to read out information as well as affect
the confidence of the public to use the information on the financial statements of the listed
companies to make economic decisions. transactions with related parties have not been
fully overs; indicators presented in the financial statements are incomplete or not the
provisions of accounting standards and some related regulations; some items essential on
financial statements that have not been fully presented, detailed and clear ... to affect the
ability to read out information as well as affect the confidence of the public to use the
information on the financial statements of the listed companies to make economic
decisions.
However, the disclosure and transparency of information on the financial statements
do not easily evaluate and recognize. So far, in Vietnam and in the world did not have any
formal set of indicators used to assess the transparency of information on the financial
statements of listed companies. Therefore, the criteria for evaluating the level of
transparency 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,
3
but how to know which factors affect the transparency of information on the financial
statements is more difficult. Because, just as understanding, mastery and control of factors
affecting the transparency of information on SFH new help business managers, the
management agency to identify the appropriate solutions to improve the transparency of
information on the financial statements. Factors affecting the transparency of information
on the financial statements can arise from inside and outside, possibly from the listed
companies as providers of information, from the auditing company in the development and
report on the financial statements of material misstatement, or from the relevant regulatory
environment, or due to any other factor.
In Vietnam so far, according to the understanding of the author, no formal study has
identified factors, as well as to quantify the impact of these factors on the transparency of
information on financial statements listed companies on the stock market in terms of
people of people who provide information, although this issue is receiving attention not
only researchers but also from enterprise management, agency management, investors,
audit firm…. This is considered a method to control the transparency of information on the
financial statements from the original.
From the above reasons, the author chooses the thesis topic: "Research on the
influence of the factors on the transparency of information on the financial statements of
the non-financial enterprises listed on stock market in the Viet Nam” with the desire to
contribute to clarifying issues interest, and is the basis for the authors propose
recommendations to improve the transparency of information on the financial statements
of 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 transparency
of information on the financial statements.
Assessing the overall transparency of information, transparency of information on
particular financial statement is a not an easy job. So far, the studies on transparency in
financial reporting information can be divided in two different approaches as follows:
With the research that transparent information on financial statements synonymous
with the level of information disclosure, usually comes from the perspective of the use of
information especially from perceived by investors to assess transparency of information
4
on the financial statements. In this study, to evaluate the level of transparency of
information, researchers oftenbased on the evaluation criteria of transparency of
organizations reputed as the OECD, the S & P, CIFAR. Typical for this approach is the
study ofRobert Bushman et al (2001); Aksu and Arman Kosedag Mine (2005);Chueng et
al (2005); Yu-Chih Lin et al (2007). Tyeah the overview of the research above, shows that
while standing on the perspective of people who use the information to assess the level of
transparency of information on the financial statements focus only assess whether the
announcement information on the financial statements, rather than focus on evaluating the
level of transparency of information in a comprehensive, fully led to the case is the
information published, but not necessarily ensure transparency and vice versa with the
information to ensure transparency but not published.
Some works have overarching approach and complete transparency of information
on the financial statements. The authors suggest that transparent information on financial
statements is not only the level of disclosure and also including the quality of information
disclosed. 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), Nguyen
Dinh Hung (2010);QI Xuan Dan LIU (2012); MarianaMan, Maria ciurea (2016); Nguyen
Trong 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 process
of drafting, presentation and provides perspective information-information provider. With
this approach, the transparency of information on the financial statements are evaluated
through the basic features: Full, timely, reliable, comparable, understandable and
accessible.
2.2. The study of factors affecting the transparency of information on finance
statement.
Through the review, may codify the elements affecting the transparency of
information 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
5
Scale of the board; The part-time between the Chairman and Managing Director;
The proportion of independent directors; Supervisory Board; Board of Directors; internal
control system; The accountants
The 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 set
of criteria to assess the transparency of information on applicable financial statements are
published 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 of
financial and governance characteristics of businesses to assess photos affect the
transparency of information on the financial statements, very few studies of factors
affecting the preparation and publication of information on the financial statements.
Research methodology: Few studies of factors affecting the transparency of
information in terms of persons providing information in quantitative methods.
Regarding the scope of the study, the majority of foreign works often research on
national scope. Also works in Viet Nam just stopped in scope each transaction basis as the
stock exchanges in Hanoi or Ho Chi Minh Stock Exchange.
3. Objectives of the study
General objects
The general objective of the thesis: Studies of factors affecting the transparency of
information on the financial statements of enterprises nonfinancial listed (DNPTCNY) and
propose recommendations to improve the transparency of information on finance report of
DNPTCNY
Detail objects
- Formalized, complement and contribute to improving the theoretical basis of
transparent information on financial statements and factors affecting the transparency of
information on the financial statements from the perspective of people to provide
information