This document examines the determinants of corporate disclosure in the financial statements of listed firms in Vietnam. It analyzes data from 198 non-financial listed firms on the Ho Chi Minh stock exchange in 2013. The study finds that firm size, use of financial leverage, and the presence of a supervision board are positively associated with corporate disclosure levels. However, state ownership and the proportion of non-executive board members are negatively related to disclosure levels. Having the chair of the board also serving as managing director is also found to reduce disclosure. The results provide insights into factors influencing disclosure among Vietnamese listed companies over the period studied.
Effect of Stock Market Listing on Financial Performance of Companies Listed i...paperpublications3
Abstract: This study is on the effect of stock market listing on financial performance of companies listed in Nairobi Securities Exchange (NSE). The specific objectives of the study determining how the nature of business industry and size of companies affected their financial performance, how government policy effected through Capital Markets Authority (CMA) influenced financial performance of companies listed in NSE, how management of the companies listed in NSE affected their financial performance, and how availability of information influenced the financial performance of companies listed in NSE. The Population of the study as well as the target population was a census of all 61 listed companies at the Nairobi Securities Exchange (NSE) as at 31st December 2012. This study established that in general stock market listing affects different profitability ratios in different ways. Some improve as a result of stock market listing while others deteriorate.
Keywords: Nairobi Securities Exchange (NSE), Listing, Return on Assets (ROA), Return on Equity (ROE).
Title: Effect of Stock Market Listing on Financial Performance of Companies Listed in Nairobi Securities Exchange
Author: Wilbert Kiplangat Kurgat
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Using data of listed firms on Hochiminh Stock Exchange, the study examines the impact of free cashflowson firm performance of manufacture, trade and real estates sectors. The findingsconsistently show that free cashflowshave a positive effect on firm performance for all sectors. However, the impact of free cashflows on firm performanceis different between firms with and without investment opportunities. This shows the relevance of Jensen's free-cashflows theory (1986) to listed Vietnamese firms at thesectoral level.
Impact of profitability, bank and macroeconomic factors on the market capital...inventionjournals
Panel data has been collected for 44 Middle Eastern banks that are operated during 2005 to 2014 in different Middle Eastern countries. Secondary data has been collected primarily through the DataStream database. The study is conducted to investigate the impact of profitability, bank and macroeconomic factors on the market capitalization of the Middle Eastern banks. Results of Hausman test have explained that fixed effect model is appropriate for the analysis. The result of multiple regression have shown that market capitalization has positive relationship with ROI while negative relationship with credit risk, inflation, and year dummy for the Middle Eastern banks. Furthermore, no relationship has been observed between market capitalization and the ROA, ROE, growth and exchange rate for the Middle Eastern banks.
Effect of Stock Market Listing on Financial Performance of Companies Listed i...paperpublications3
Abstract: This study is on the effect of stock market listing on financial performance of companies listed in Nairobi Securities Exchange (NSE). The specific objectives of the study determining how the nature of business industry and size of companies affected their financial performance, how government policy effected through Capital Markets Authority (CMA) influenced financial performance of companies listed in NSE, how management of the companies listed in NSE affected their financial performance, and how availability of information influenced the financial performance of companies listed in NSE. The Population of the study as well as the target population was a census of all 61 listed companies at the Nairobi Securities Exchange (NSE) as at 31st December 2012. This study established that in general stock market listing affects different profitability ratios in different ways. Some improve as a result of stock market listing while others deteriorate.
Keywords: Nairobi Securities Exchange (NSE), Listing, Return on Assets (ROA), Return on Equity (ROE).
Title: Effect of Stock Market Listing on Financial Performance of Companies Listed in Nairobi Securities Exchange
Author: Wilbert Kiplangat Kurgat
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Using data of listed firms on Hochiminh Stock Exchange, the study examines the impact of free cashflowson firm performance of manufacture, trade and real estates sectors. The findingsconsistently show that free cashflowshave a positive effect on firm performance for all sectors. However, the impact of free cashflows on firm performanceis different between firms with and without investment opportunities. This shows the relevance of Jensen's free-cashflows theory (1986) to listed Vietnamese firms at thesectoral level.
Impact of profitability, bank and macroeconomic factors on the market capital...inventionjournals
Panel data has been collected for 44 Middle Eastern banks that are operated during 2005 to 2014 in different Middle Eastern countries. Secondary data has been collected primarily through the DataStream database. The study is conducted to investigate the impact of profitability, bank and macroeconomic factors on the market capitalization of the Middle Eastern banks. Results of Hausman test have explained that fixed effect model is appropriate for the analysis. The result of multiple regression have shown that market capitalization has positive relationship with ROI while negative relationship with credit risk, inflation, and year dummy for the Middle Eastern banks. Furthermore, no relationship has been observed between market capitalization and the ROA, ROE, growth and exchange rate for the Middle Eastern banks.
The authors analyze a large stratified random sample of firms that provided them with measures of performance and each firm’s top manager’s perception of the severity of business environment constraints faced by his/her firm. Unlike most existing studies that rely on external and aggregated proxy measures of the business environment, defined to include legal and institutional features, the authors have information from each surveyed firm.
The authors find that foreign ownership and competition have an impact on performance – measured as the level of sales controlling for inputs. Export orientation of the firm does not have an effect on performance once ownership is taken into account. When analyzing the impact of perceived constraints, they show that few retain explanatory power once they are introduced jointly rather than one at a time, or when country, industry and year fixed effects are introduced. Indeed, country fixed effects largely absorb the explanatory power of the constraints faced by individual firms. Replicating the analysis with commonly used country-level indicators of the business environment, they do not find much of a relationship between constraints and performance.
Authored by: Simon Commander, Jan Svejnar
Published in 2007
Factors Affecting Performance of Cut Flower Firms in Kenya: A Case of Maji Ma...paperpublications3
Abstract: The flower firms in Kenya face high competition from those in the developed countries whose produce is deemed to be of quality. There is a need therefore to improve on the activities in Kenyan flower firms to gain competitive edge. This study sought to provide insights into policies and practices of flower production and marketing in MajiMazuri Flower Company in Uasin Gishu County. The overall objective of the study was to look at the Factors Affecting the Performance of Cut flower firms and the main factors that shape its structure and functioning in the cut flower industry in Kenya. Specifically, the study sought, to establish the contribution Government policy in the performance of the cut flower. The target population is Maji Mazuri flowers with 37 employees. The study used Census research design on a total of 37 departmental heads and supervisors. Data was collected through questionnaires and interviews then analysed by SPSS. It was found out that the Government of Kenya supports the flower sector by providing export licenses, marketing horticultural produce internationally through the Ministry of Agriculture. It is recommended that Flower firms need to follow the rules and regulation in place for them to succeed.
Financial Distress Prediction With Altman Z-Score And Effect On Stock Price: ...inventionjournals
: This study aimed to obtain empirical evidence about the state of financial distress prediction using the Altman Z-score and ratio-ratio test Z-score in influencing the price of shares in the chemical subsectors listed in Indonesia Stock Exchange 2009-2014 period. The samples were determined by purposive sampling, while data processing using Microsoft Excel, and SPSS. Financial distress only occurs in ETWA company in 2014 in the category of bankruptcy. Effect of a Z-score to the stock price is significantly 0.004 and ratio-ratio of the Altman Z score is working capital to total assets have no significant effect amounted to 0,085, retained earnings to total assets have no significant effect amounted to 0,478, EBIT to total assets have a significant influence amounted to 0,016, and the book value of equity to book value of total debt had no significant effect of 0.078. Contribution ratio-ratio Altman Z-score of 48.6% to the stock price. In conclusion, the financial distress that are in reasonably good condition. Z-score can be used to predict stock prices, and ratios of Z-score only ebit to total assets can significantly affect stock prices partially.
The Effects of Macroeconomic Variables on Stock Returns in the Jordanian Stoc...Premier Publishers
This study investigated the effects of six macroeconomic variables on the stock returns in the Jordanian financial market between 1976 and 2016 using annual data. The study used the stock return data for 218 companies listed on the market and the quarterly data of the six macroeconomic variables (Industrial production, interest rates, money supply, inflation, GDP, import prices). Autoregressive Distributed Lag (ARDL) model was employed for the estimations. The reason to test these models in the Jordanian stock market was motivated by the fact that the returns of shares in the Arab markets in general do not follow the normal distribution. The results of the estimated ARDL model revealed that the industrial production has a statistically significant effect on the returns of shares at a significant level of 1 percent, and in line with the hypothesis of the study because the relationship was positive. The effect of the money supply on the stock returns is statistically significant, (positive impact of money supply on stock returns), while the impact of import prices was negative and statistically significant on the stock returns. This work has found that it is imperative to search for new markets for the disposal of Jordanian products, and not rely on traditional markets only such as Gulf markets, the Iraqi market, this requires policies to strengthen and support the role of local industries, to develop global quality requirements, and to develop preferential features for products to be compared with those in other foreign markets.
This study focused on the relationship between access to finance and attrition in small and
medium textiles firms in Nigeria. The study became necessary due to the moribund nature of the textile
industry in Nigeria. The sector was the second largest employer of labour but declined rapidly in productivity
between 1991 and 2000, with 80 textile firms closing shop. The study takes a firm specific approach to help
investigate the source of decline. Commentators on the causes of the downward trend in the textile industry
had mentioned many perceived factors including access to finance. The purpose of this study is to isolate
access to finance and to subject it to more intensive investigation. To do this effectively, a sampling frame
which contained the list of the collapsed and standing firms was obtained from the textile manufacturers
association of Nigeria based in Kaduna. All the selected firms were of medium category. A purposive
sampling was used to enlist 3 entrepreneurs each from both failed and successful textile firms and 10 senior
managers of failed and 4 senior managers of successful firms for a pilot study. Using a snow-balling
technique, 196 respondents comprising owners and senior managers from failed firms were administered semistructured & unstructured questionnaire whilst 160 questionnaire were also administered on owners and senior
managers from successful firms. A total of 232 questionnaire were retrieved representing 65% of
questionnaires sent out. The statistical tools used for testing are correlation, ANOVA and Regression. The
analysis shows that the correlation between access to finance and the attrition of textiles industries in Nigeria
implying a strong negative relationship between access to finance and the attrition of textile industries in
Nigeria. It is recommended that textile industries take advantage of the most recent source of financing which
is the Nigeria industrial bank. Financial discipline needs to be practiced by textile entrepreneurs in order to
distinguish between company funds and personal funds.
The delivery process consisted in the deregulation of local markets and international trends, which allowed the emergence of the phenomenon "globalization". This process has resulted in the restructuring of companies that are considered in the expansion of business, the level of competitiveness, expansion in the market of operations, technological adaptations and strategies; Mergers and Acquisition (M& A) characteristics operations. However, the main objective is to have priority in information promotion policies and initiatives to improve business conditions.
The objective of this article is to address the M& A theme in the context of globalization, seeking to answer the following question: what are the results obtained in the process of restructuring and operating M& A in the telecommunications company Oi S / A between the year of its creation and by the year 2016? To all that the literature review, literature studies, literature, literature studies, non-literature literature, pages, semantic studies, about the theme, being a bibliographic and descriptive research.
The study demonstrates that not always the processes of the frequency and license are advantageous to the parties related, due to character complexes that involve such operations. These groups can be supported in their search, mainly in studies on the market of action, differences in quotations and payments, employment opportunities in the societies involved.
Conducted a cross-cultural investment analysis of three petroleum refining companies, BP (United Kingdom), Total (France), and PetroChina (China) by conducting a.) a SWOT analysis and its factors' importance of sustainability in the global market; b.) a comparative analysis the three nations via pre-IFRS development factors, Hofstede's cultural dimensions, and Gray's accounting values concerning their impact on financial information quality; c.) a comparative analysis of the three companies business strategies, financial reporting practices, financial ratio analysis, corruption levels, and financial statement limitation; and d.) concluded with the best investment option.
Efficiency Evaluation of Thailand Gross Domestic Product Using DEAIJMREMJournal
The goal of this research is to evaluate the efficiency of GDP in Thailand from the past years and provide suggestions for government and policy-makers on ways to manage inputs and improve outputs in the future while enhancing the GDP of Thailand. The paper analyzed the data collected from Office of the National Economic and Social Development of Thailand through a period of 25 years ranging from 1993 to 2017. The results show that the year 2017 was the worst years in terms of efficiency. In order to achieve the research goal, data envelopment analysis (DEA) was used. Theoretically, research has found that evaluation of GDP can be improved by eradicating the negative values of slack movement. In economic terms, the research proposed the promotion of export-led growth, business incubators, and entrepreneurship to boost not only the inputs but also the GPD of the country. In general, the GDP of Thailand is quite efficient. This research can provide strategic advice for Thai Government to improve the Gross Domestic Product thoroughly
Internal Audit Independence and Share Performance of Firms Listed In the Nair...paperpublications3
Abstract: Internal audit is considered as the backbone of the business accounting as it is the section that scrutinizes all businesses transactions of a company. The main objective of the study is to establish the relationship between Internal Audit Independence and Share performance of firms listed in the Nairobi Stock Exchange. The study adopted a descriptive research design targeting 60 companies quoted in the Nairobi Stock Exchange as of December 2013. The study found existence of significantly positive correlation between internal audit independence and share performance (Pearson correlation coefficient r = .456 Sig. = .011). It is recommended that listed companies should adopt effective corporate governance practices that address key auditing independence for effectiveness of audit department. This will go a long way to cut or eliminate wastage and thus improve company returns to attract investors in the stock exchange market.
The authors analyze a large stratified random sample of firms that provided them with measures of performance and each firm’s top manager’s perception of the severity of business environment constraints faced by his/her firm. Unlike most existing studies that rely on external and aggregated proxy measures of the business environment, defined to include legal and institutional features, the authors have information from each surveyed firm.
The authors find that foreign ownership and competition have an impact on performance – measured as the level of sales controlling for inputs. Export orientation of the firm does not have an effect on performance once ownership is taken into account. When analyzing the impact of perceived constraints, they show that few retain explanatory power once they are introduced jointly rather than one at a time, or when country, industry and year fixed effects are introduced. Indeed, country fixed effects largely absorb the explanatory power of the constraints faced by individual firms. Replicating the analysis with commonly used country-level indicators of the business environment, they do not find much of a relationship between constraints and performance.
Authored by: Simon Commander, Jan Svejnar
Published in 2007
Factors Affecting Performance of Cut Flower Firms in Kenya: A Case of Maji Ma...paperpublications3
Abstract: The flower firms in Kenya face high competition from those in the developed countries whose produce is deemed to be of quality. There is a need therefore to improve on the activities in Kenyan flower firms to gain competitive edge. This study sought to provide insights into policies and practices of flower production and marketing in MajiMazuri Flower Company in Uasin Gishu County. The overall objective of the study was to look at the Factors Affecting the Performance of Cut flower firms and the main factors that shape its structure and functioning in the cut flower industry in Kenya. Specifically, the study sought, to establish the contribution Government policy in the performance of the cut flower. The target population is Maji Mazuri flowers with 37 employees. The study used Census research design on a total of 37 departmental heads and supervisors. Data was collected through questionnaires and interviews then analysed by SPSS. It was found out that the Government of Kenya supports the flower sector by providing export licenses, marketing horticultural produce internationally through the Ministry of Agriculture. It is recommended that Flower firms need to follow the rules and regulation in place for them to succeed.
Financial Distress Prediction With Altman Z-Score And Effect On Stock Price: ...inventionjournals
: This study aimed to obtain empirical evidence about the state of financial distress prediction using the Altman Z-score and ratio-ratio test Z-score in influencing the price of shares in the chemical subsectors listed in Indonesia Stock Exchange 2009-2014 period. The samples were determined by purposive sampling, while data processing using Microsoft Excel, and SPSS. Financial distress only occurs in ETWA company in 2014 in the category of bankruptcy. Effect of a Z-score to the stock price is significantly 0.004 and ratio-ratio of the Altman Z score is working capital to total assets have no significant effect amounted to 0,085, retained earnings to total assets have no significant effect amounted to 0,478, EBIT to total assets have a significant influence amounted to 0,016, and the book value of equity to book value of total debt had no significant effect of 0.078. Contribution ratio-ratio Altman Z-score of 48.6% to the stock price. In conclusion, the financial distress that are in reasonably good condition. Z-score can be used to predict stock prices, and ratios of Z-score only ebit to total assets can significantly affect stock prices partially.
The Effects of Macroeconomic Variables on Stock Returns in the Jordanian Stoc...Premier Publishers
This study investigated the effects of six macroeconomic variables on the stock returns in the Jordanian financial market between 1976 and 2016 using annual data. The study used the stock return data for 218 companies listed on the market and the quarterly data of the six macroeconomic variables (Industrial production, interest rates, money supply, inflation, GDP, import prices). Autoregressive Distributed Lag (ARDL) model was employed for the estimations. The reason to test these models in the Jordanian stock market was motivated by the fact that the returns of shares in the Arab markets in general do not follow the normal distribution. The results of the estimated ARDL model revealed that the industrial production has a statistically significant effect on the returns of shares at a significant level of 1 percent, and in line with the hypothesis of the study because the relationship was positive. The effect of the money supply on the stock returns is statistically significant, (positive impact of money supply on stock returns), while the impact of import prices was negative and statistically significant on the stock returns. This work has found that it is imperative to search for new markets for the disposal of Jordanian products, and not rely on traditional markets only such as Gulf markets, the Iraqi market, this requires policies to strengthen and support the role of local industries, to develop global quality requirements, and to develop preferential features for products to be compared with those in other foreign markets.
This study focused on the relationship between access to finance and attrition in small and
medium textiles firms in Nigeria. The study became necessary due to the moribund nature of the textile
industry in Nigeria. The sector was the second largest employer of labour but declined rapidly in productivity
between 1991 and 2000, with 80 textile firms closing shop. The study takes a firm specific approach to help
investigate the source of decline. Commentators on the causes of the downward trend in the textile industry
had mentioned many perceived factors including access to finance. The purpose of this study is to isolate
access to finance and to subject it to more intensive investigation. To do this effectively, a sampling frame
which contained the list of the collapsed and standing firms was obtained from the textile manufacturers
association of Nigeria based in Kaduna. All the selected firms were of medium category. A purposive
sampling was used to enlist 3 entrepreneurs each from both failed and successful textile firms and 10 senior
managers of failed and 4 senior managers of successful firms for a pilot study. Using a snow-balling
technique, 196 respondents comprising owners and senior managers from failed firms were administered semistructured & unstructured questionnaire whilst 160 questionnaire were also administered on owners and senior
managers from successful firms. A total of 232 questionnaire were retrieved representing 65% of
questionnaires sent out. The statistical tools used for testing are correlation, ANOVA and Regression. The
analysis shows that the correlation between access to finance and the attrition of textiles industries in Nigeria
implying a strong negative relationship between access to finance and the attrition of textile industries in
Nigeria. It is recommended that textile industries take advantage of the most recent source of financing which
is the Nigeria industrial bank. Financial discipline needs to be practiced by textile entrepreneurs in order to
distinguish between company funds and personal funds.
The delivery process consisted in the deregulation of local markets and international trends, which allowed the emergence of the phenomenon "globalization". This process has resulted in the restructuring of companies that are considered in the expansion of business, the level of competitiveness, expansion in the market of operations, technological adaptations and strategies; Mergers and Acquisition (M& A) characteristics operations. However, the main objective is to have priority in information promotion policies and initiatives to improve business conditions.
The objective of this article is to address the M& A theme in the context of globalization, seeking to answer the following question: what are the results obtained in the process of restructuring and operating M& A in the telecommunications company Oi S / A between the year of its creation and by the year 2016? To all that the literature review, literature studies, literature, literature studies, non-literature literature, pages, semantic studies, about the theme, being a bibliographic and descriptive research.
The study demonstrates that not always the processes of the frequency and license are advantageous to the parties related, due to character complexes that involve such operations. These groups can be supported in their search, mainly in studies on the market of action, differences in quotations and payments, employment opportunities in the societies involved.
Conducted a cross-cultural investment analysis of three petroleum refining companies, BP (United Kingdom), Total (France), and PetroChina (China) by conducting a.) a SWOT analysis and its factors' importance of sustainability in the global market; b.) a comparative analysis the three nations via pre-IFRS development factors, Hofstede's cultural dimensions, and Gray's accounting values concerning their impact on financial information quality; c.) a comparative analysis of the three companies business strategies, financial reporting practices, financial ratio analysis, corruption levels, and financial statement limitation; and d.) concluded with the best investment option.
Efficiency Evaluation of Thailand Gross Domestic Product Using DEAIJMREMJournal
The goal of this research is to evaluate the efficiency of GDP in Thailand from the past years and provide suggestions for government and policy-makers on ways to manage inputs and improve outputs in the future while enhancing the GDP of Thailand. The paper analyzed the data collected from Office of the National Economic and Social Development of Thailand through a period of 25 years ranging from 1993 to 2017. The results show that the year 2017 was the worst years in terms of efficiency. In order to achieve the research goal, data envelopment analysis (DEA) was used. Theoretically, research has found that evaluation of GDP can be improved by eradicating the negative values of slack movement. In economic terms, the research proposed the promotion of export-led growth, business incubators, and entrepreneurship to boost not only the inputs but also the GPD of the country. In general, the GDP of Thailand is quite efficient. This research can provide strategic advice for Thai Government to improve the Gross Domestic Product thoroughly
Internal Audit Independence and Share Performance of Firms Listed In the Nair...paperpublications3
Abstract: Internal audit is considered as the backbone of the business accounting as it is the section that scrutinizes all businesses transactions of a company. The main objective of the study is to establish the relationship between Internal Audit Independence and Share performance of firms listed in the Nairobi Stock Exchange. The study adopted a descriptive research design targeting 60 companies quoted in the Nairobi Stock Exchange as of December 2013. The study found existence of significantly positive correlation between internal audit independence and share performance (Pearson correlation coefficient r = .456 Sig. = .011). It is recommended that listed companies should adopt effective corporate governance practices that address key auditing independence for effectiveness of audit department. This will go a long way to cut or eliminate wastage and thus improve company returns to attract investors in the stock exchange market.
Analysis Market Reaction on Timeliness Reporting: Study on Indonesia Stock Ex...inventionjournals
Indonesia Stock Exchange (ISE) in 2012 recorded that there were 36.6% of companies that did not meet the timeliness reporting in preparing the financial statements, whereas companies that implement Good Corporate Governance (GCG) should be timely in preparing the financial statements as the implementation of the principle of transparency which is one of the principles of GCG. This study aims to examine how the role of GCG in monitoring and suppressing the timeliness reporting in preparing the financial statements and whether there are differences in market reaction between the companies that meet the timeliness reporting and which do not. The research samples taken from population members were 96 companies listed on Indonesia Stock Exchange in 2013. The data processed by using logistic regression and independent t test. The results show that the institutional ownership, independent board and audit committee play a role in the fulfillment of timeliness reporting while the management ownership and board size have insignificant. Further results of the study showed no difference in reaction to the market on the company meet and do not meet the timeliness reporting.
Post privatization Corporate Governance and the challenges of working capital...inventionjournals
The paper examines the impact of Corporate Governance on liquidity ratio of Ashaka Cement Company. The variables studied were activity ratio as dependent variables and Corporate Governance proxies as independent variables. Data was collected from the secondary sources, and the statistical tools employed in the Methodology were; Performance Trend Analysis and OLS regression. Trend Analysis result suggests that, liquidity ratio was higher pre privatization periods. Inferential Statistics Result suggests that, minority ownership, board size and privatization have positive and significant impact on liquidity ratio of Ashaka Cement Company, while, Total Market Value of Shares and percentage of non executive directors have negative and significant impact on liquidity ratio of Ashaka Cement Company. However, workforce has positive and insignificant impact on liquidity ratio. The study concludes that, corporate governance has significant impact on liquidity ratio of Ashaka Cement Company. However, unfavourable macroeconomic environment militated against its efficiency. The study recommends that, Nigerian government should ensure favorable macroeconomic environment, Foreign Investors should secure global cement market opportunities to justify investment and enhance companies’ earnings The findings may useful to corporate stakeholders and government policy makers
Impact of the Presence of an Audit Committee on the Stock Market Performance ...iapgroup
The question of performance is located in the heart of the issue of the governance of the banks. The purpose of this issue is whether the governance mechanisms significantly explain the performance level. This paper aims to
study the impact of the presence of an audit committee on the stock market performance of Tunisian banks
GAMIFICATION AND RESOURCE POOLING FOR IMPROVING OPERATIONAL EFFICIENCY AND EF...IAEME Publication
The authors of this article attempted combining the two methodologies of
gamification and resource pooling with a view to derive the maximum productivity from
the organization drawing certain significant commonalities. Another biggest motive
behind the authors for combining these two techniques is the fact that eCommerce is a
business vertical or a market place where people from all walks of life participate in
online purchases.
The Impact of Capital Structure on the Performance of Industrial Commodity an...IJEAB
This paper investigates the impact of capital structure on the performance of commodity and service firms listed on the Vietnamese Stock Exchange. Data used in the paper were collected from the 142 firms listed on Ho Chi Minh and Ha Noi Stock Exchange during time 2009-2015. By using the descriptive statistics and linear regression model, the findings shows that there is negative relationship between capital structure (e.i. STD. LTD and DA) and peformance of the firms (i.e. ROE) for the commodity and services firms listed on two given Stock Exchange Market of Vietnam. Following are possible implications for the study.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The International Journal of Organizational Innovation Vol 7.docxcherry686017
The International Journal of Organizational Innovation Vol 7 Num 1 July 2014 105
THE PROSPECTS OF APPLING THE INTERNATIONAL
FINANCIAL REPORTING STANDARDS IN VIETNAM –
AN EMPIRICAL STUDY OF ACCOUNTING PROFESSIONALS
Wen-Hsiang Lin
Department of Accounting
I-Shou University, Taiwan, ROC
[email protected]
Shu-Hui Su*
Department of Accounting
I-Shou University, Taiwan, ROC
*Corresponding author: [email protected]
Thi Thanh Phan
College of Management
I-Shou University, Taiwan, ROC
[email protected]
Abstract
The purpose of this study is to investigate the implications of applying International Financial
Reporting Standards (IFRSs) in Vietnam. A survey was conducted to identify issues of apply-
ing IFRSs in Vietnam. The results indicate that: (1) the information of IFRSs in Vietnam is
not really adequate and not diversified enough, (2) a large percent of respondents tend to
agree with the benefits of applying IFRSs, such as better comparability with other businesses,
lower cost of capital, and less reporting transform cost, (3) the lack of knowledge and the
complexity of IFRSs and the training of accounting staffs are important challenges in apply-
ing IFRSs, and (4) a large majority of respondents believe that convergence to IFRSs is con-
sistent with the conditions of Vietnam and the best time to introduce convergence to IFRSs is
the period 2015 to 2016.
Key Words: International Financial Reporting Standards (IFRSs), Vietnamese
Accounting Standards (VASs), Convergence to IFRSs
The International Journal of Organizational Innovation Vol 7 Num 1 July 2014 106
Introduction
Accounting, as a tool of economic
management, has also been experi-
enceing major changes in recent years.
Abell, et al. (2008) asserted that the
issuance and adoption of International
Financial Reporting Standards (IFRSs)
around the world is now a special con-
cern of most national and professional
organizations. Vietnam plan to com-
plete the integration in the field of ac-
counting and auditing before 2020. Vi-
etnamese Accounting Standards
(VASs) is generally based on IFRSs
updated in 2003 while “a formal date
for the full adoption of IFRSs has not
yet been accounted”. The purpose of
this study is to identify the most suita-
ble timing and the best way to apply
IFRSs in Vietnam. The findings pre-
sent that a majority of respondents be-
lieved that convergence IFRSs is con-
sistent with the conditions of Vietnam.
Convergence means Vietnam should
update, amend, supplement, and refine
VASs to fit with IFRSs. This research
enhances the accounting practical for
assessment and reflects the general
perception about IFRSs, which identify
the possible way available to Vietnam
for using IFRSs smoothly.
Literature Review
For the strong development of
capital markets and multinational en-
terprises, the financial transactions are
great and growing in complexity
worldwide. Jauffret (2010) claimed
t ...
Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturi...ijtsrd
The objective of the study is to examine the effect of voluntary disclosure on corporate performance of quoted manufacturing companies in Nigeria. The study specifically examined the effect of voluntary disclosure on ROA, ROE, and NPM. The population of the study was drawn from manufacturing firms quoted on the floor of the Nigerian Stock Exchange. financial year. The study was based on secondary sources of data, collected from annual financial reports. The study used content analysis to analyse the voluntary disclosure items. The study finds that voluntary disclosure has a significant negative effect on profitability return on assets, return on equity and net profit margin . The study therefore recommends, among others, manufacturing firms to enhance voluntary disclosure based on a cost benefit analysis of such, and also, help “bridge the gap†between financial numbers and the true economics underlying the company’s transaction. Voluntary disclosure is also recommended as a medium to curtail the shenanigans of earnings management. Ikemefuna, Victor C. | Onuora, J. K. "Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturing Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42600.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42600/effect-of-voluntary-disclosure-on-corporate-performance-of-quoted-manufacturing-companies-in-nigeria/ikemefuna-victor-c
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This study ascertained the relationship between Firm Characteristics and Financial Performance with a focus on quoted manufacturing firms in Nigeria. The specific objectives are to ascertain the relationship between Leverage, Board Size, and Tobin's Q of quoted manufacturing firms in Nigeria from 2010 2019. This study employed the use of Panel Data and Ex post facto research design. Secondary data were sourced from the publications of Nigeria Stock Exchange NSE and annual reports and accounts of the sampled firms. The data analyses were done through descriptive and inferential statistics. Descriptive statistics was done using trend analysis and multiple comparison of mean standard deviation of variables. Multivariate linear regression analysis via E Views 9.0 statistical software was used to test the hypotheses. The findings of this study are inter alia leverage and board size has significant negative relationship with Tobin's Q at 5 level of significance. It was recommended amongst others that firms need to use proportionate debt financing in relation to total capital financing in order to reverse the inverse relationship between leverage and Tobin's Q. Therefore, firms need to use debt financing up to a point where any extra debt financing reduces net cost to the firm. Okafor, Tochukwu G. | Ossai, Eke Celestine "Firm Characteristics and Financial Performance: Evidence from Quoted Manufacturing Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47517.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/47517/firm-characteristics-and-financial-performance-evidence-from-quoted-manufacturing-firms-in-nigeria/okafor-tochukwu-g
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Determinants of Corporate Disclosure in Financial Statements: Evidence from Vietnamese Listed Firms
1. International Journal of Advanced Engineering, Management and Science (IJAEMS) [Vol-3, Issue-5, May- 2017]
https://dx.doi.org/10.24001/ijaems.3.5.11 ISSN: 2454-1311
www.ijaems.com Page | 474
Determinants of Corporate Disclosure in
Financial Statements: Evidence from
Vietnamese Listed Firms
Le Long Hau1
, Luu Chi Danh2
1
College of Economics, Cantho University, Cantho City, Vietnam
Campus II, 3-2 street, Ninhkieu district, Cantho city, Vietnam
2
Van Lang University, Hochiminh City, Vietnam
Abstract— Using data of listed firms on Hochiminh Stock
Exchange, the study examines determinants of corporate
disclosure in financial statements. In line with the
literature, the findingsshow that firm size, the use of
financial leverage and the presence of supervision board
have a positive influence on corporate disclosure.
Furthermore, auditing firm (whether a Big4 or not) also
plays an important role in the degree of information
disclosure by firms.Contradicting to the literature,
however state ownership and the proportion of non-
executive members in director board show a negative
relation to corporate disclosure level. These counter
factscanbe explained by real situations of Vietnam over
the studied period. Finally, the concurrent role between
chair of director board and managing director reduces
corporate disclosure degree, as predicted by the agency
theory.
Keywords— Corporate disclosure, listed firms, Vietnam,
signaling theory, agency theory .
I. INTRODUCTION
Corporate disclosure is very necessary and important for
investors on the financial market. The more corporate
disclosureis provided to the market, the less asymmetric
information is between firmsand investors, and also
between firms and other agents (government agencies,
banks, business partners).This help to reduces agency
problem. Corporate disclosure hence is an important
factor that directly influences the decision making of
market participants who mainly obtain information
through firm’sfinancial statements. The obtaining and
screening of corporate information is even more
necessary for investors in an emerging stock market like
Vietnam. However, the disclosure degreevaries among
firms and its determinants havestill been an open question
for both academics and practioners.
Many empirical studies on the determinants ofcorporate
disclosurein financial statementshave been implemented
for countries around the world (e.g., Patton and Zelenka,
1997; Ahmed and Courtis, 1999; Owusu-Ansah, 1998;
Bushman, Piotroski et al. Cheung, Connelly et al., 2006 ...
..). For Vietnam, research on this issue is also conducted,
for example, Phuong and Phuong (2014). Nevertheless,
this study is different from the previous ones in a number
of aspects. Firstly, in this study, the effect of some factors
that are not considered bythe other research is
investigated (e.g.,fixed assets, sectors, corporate
governance variables such as the size and composition of
director board, management structure and board of
supervisors). In addition, the sample in this study has a
slightly larger number of observations than previous ones,
which shows a better representation for Vietnamese listed
firms.
The remainder of this study is structured as follows. In
section 2, empirical studies on the issue are reviewed,
while the methodology is presented in section 3. Section 4
shows empirical results of the study. Finally, conclusions
and policy recommendations are shown in section 5.
II. LITERATURE SURVEY
Examples of empirical research on the determinants of
corporate disclosure for countries in the world can be seen
as follows. Singhvi (1968) examines the factors
influencing corporate disclosure of Indian companies in
the period from 1963 to 1965, including firm size, profit,
marginal profit, auditing firm, management type and
major shareholder number. The results show that size,
management structureand major shareholder numberare
statistically related to corporate disclosure, while the
remaining variables are not correlated to corporate
disclosure. Raffournier (1995) teststhe influence of size,
financial leverage,profitability, ownership structure,
internationalized degree, auditor’s size, the fixed-asset-to-
total-asset ratio and sector on disclosure of Swiss listed
firms in 1991. Results show that only size and
internationalized degrees play astatistically significant
role in the company's disclosure policy. Patton and
Zelenka (1997) find that auditing type, number of
2. International Journal of Advanced Engineering, Management and Science (IJAEMS) [Vol-3, Issue-5, May- 2017]
https://dx.doi.org/10.24001/ijaems.3.5.11 ISSN: 2454-1311
www.ijaems.com Page | 475
employees, status of listed securities and returns on equity
show a significant effect on the corporate disclosure of
joint-stock firms in Czech Republic. Owusu-Ansah
(1998) points out that size, ownership structure, age,
internationalized degree and profitability are significantly
associated with disclosure of listed firms in Zimbabwe.
For listed firms in Kenya in 1992-2001, Barako (2007)
find that corporate governance features and corporate
characteristics.In Vietnam, studies using different
approaches, significantly influence corporate disclosure
and data samples are also conducted. For example,
Phuong and Phuong (2014) show that size, auditing firm,
profitability, listing time and ownership of foreign
shareholders are significantly related to the corporate
disclosure of 99 listed firms on Hochi minh stock
exchange in 2011.
III. METHODOLOGY
3.1 Data
The sample consists of 198 non-financial listed firms
(accounting for approximately of 66% of the population).
Data are obtained from the audited financial statements in
2013 of listed firms on the Ho Chi Minh stock exchange.
Financialsare not included in the sample due to their
particular characteristics, i.e they are subject to strict
regulations and have a different accounting mechanism.
3.2 Empirical specification:
Dependent variable - corporate disclosure index:
Since firms produce the financial statements subject to
Decision 16/2006, together with the Circular 210/2009-
BTC and 244/2009-BTC issued by Ministry of Finance of
Vietnam, the list of corporate disclosure itemsis
constructedbased on these legal documents. This study
utilizes the approach by previous studies with some
adjustments for current context of Vietnam.More
specifically, all possible disclosure items from financial
statements shown in notes to financial statement are
taken.Hence, a checklist of maximum number of 120
disclosure items in the financial statements, comprising of
both legally compulsory and voluntary disclosure items,
is presented in table 1.1
Then the corporate disclosure
index, measuring the corporate disclosure degree,is
calculated by the ratio of number of disclosed items to the
maximum number of disclosure items (e.g., Barako
(2007)).
1
The list of items is available upon request.
Table.1.Summary of corporate disclosure items in financial
statements
Contents
Number of
items
Items are related to balance sheet 52
Items are related to income statement 12
Items are related to cash flow statement 6
Items must be presented on notes to
financial statements as required by circular
210/2009/TT-BTC issued by Ministry of
Finance
13
Items are indicated to notes to financial
statements itself
37
Total 120
Corporate disclosure indexreads
𝐼𝑗 =
∑ 𝑋𝑖𝑗
𝑛 𝑗
𝑖=1
𝑛𝑗
in which:Ij is disclosure of firm j (0≤Ij≤1); nj shows the
maximum number of disclosed items of firm j (nj ≤ 120);
Xij = 1 if item ioccurs and is released by firm, Xij = 0 if
the item i occurs but is unreleased by firm, Xij is not
counted if item i does not occur; Xijcomprises of both
obligatory and disclosed items. All these items (Xij) are
equally weighed summedin calculating corporate
disclosure index Ijto avoid biases in assigning weights to
items due to subjective assessments.
Definition of all independent variables:
Based on the literature, this study investigates a number
offactors which can be classified into two groups:
corporate operating characteristics and corporate
governance characteristics, (see, e.g., Hossainet al, 1994;
Wallace vàNaser, 1995; Barako, 2007; PhươngvàPhương,
2014; Singhvi, 1968;Ahmed và Courtis,1999).All
independent variables are definedas follows:
+ Variables proxy for corporate operating
characteristics:
SIZE (Billion VND) - Corporate size: defined as logarithm
of total sales
QRATIO (Times) - Quick ratio: defined as [short-term
assets – inventories] divided by short-term debts.
PROFIT (%) - Profitability: defined as net profits divided
by total sales
DEBT (Times) - Debt ratio: defined as total debts divided
by owner’s equity
FASSETS (%) - Fixed assets: defined as [fixed assets –
accumulated depreciation] divided by total assets
BIG4 - Audit firm: Equal to 1 if firm is audited by a Big4-
auditing firm, and equal to 0 otherwise
LTIME (Years) - Listing time: defined as the time period
from listing year up to year of 2013
3. International Journal of Advanced Engineering, Management and Science (IJAEMS) [Vol-3, Issue-5, May- 2017]
https://dx.doi.org/10.24001/ijaems.3.5.11 ISSN: 2454-1311
www.ijaems.com Page | 476
SECTOR - Sectors: Equal to 1 if firm is inmanufacturing
sector, and equal to 0 otherwise
FOREIGN (%) - Foreign ownership: defined as foreigner-
owned shares divided by total shares
STATE (%) - State ownership: defined as state-owned
shares divided by total shares
+ Variables proxy for corporate governance
characteristics:
BOARDSIZE (people) - Director board size: defined as
number of members in director board
BOARDCOMP (%) - Director board composition: defined
as number of non-executive director members divided by
total number of members in director board
DUALITY - Chairperson of director board takes dual
positions: Equal to 1 if firm’s chairman of director board
is concurrent the general director, and equal to 0
otherwise
SUPERV - Supervision board: Equal to 1 if firm has a
supervision board, and equal to 0 otherwise
3.3 Estimation method
The regression specification is estimated using OLS
method. In addition, the tests to check for reliability of the
regression resultsare also performed such as multi-
collinearity (variance inflation factor
(VIF)),heteroschedasticity (White test) and
autocorrelation (Lagrange (LM)).
IV. EMPIRICAL RESULTS
4.1 Correlation matrix between variables and summary statistics of variables
The correlation matrix between variables is presented in table 2, while table 3 shows the summary statistics of all variables.
As can be seen from Table 2, the correlation between variables is fairly small (almost less than 0.4), therefore the
possible effects of multi-collinearity in OLS regressions are negligible. Yet, a statistical check via VIF test is sobering.
Table.2: Correlation matrix between variables
SIZ
E
QRA
TIO
PRO
FIT
DE
BT
FASS
ETS
BIG
4
LTI
ME
SECT
OR
FORE
IGN
STA
TE
BOARD
SIZE
BOARD
COMP
DUAL
ITY
SUPE
RV
SIZE 1
QRATIO
-
0.31
70
1
PROFIT
0.16
72
0.147
2
1
DEBT
0.21
24
-
0.220
6
-
0.20
83
1
FASSET
S
0.06
52
-
0.184
3
0.00
74
-
0.02
61
1
BIG4
0.36
43
-
0.035
8
0.01
85
-
0.10
25
-
0.092
7
1
LTIME
0.15
08
-
0.136
0
0.12
09
-
0.13
55
0.026
6
0.05
41
1
SECTOR
0.31
73
-
0.144
2
0.04
63
-
0.03
99
0.180
9
0.13
36
0.18
13
1
FOREIG
N
0.20
84
0.186
6
0.10
55
-
0.24
97
0.011
8
0.41
92
0.22
85
-
0.001
2
1
STATE
0.02
11
0.001
7
0.12
79
-
0.05
24
0.165
4
-
0.07
36
-
0.03
86
0.024
4
-
0.1292
1
BOARDS
IZE
0.11
83
0.101
7
0.21
34
-
0.10
05
-
0.015
6
0.23
85
0.12
65
0.070
5
0.3202
-
0.15
36
1
BOARD
COMP
0.01
06
0.038
0
0.16
22
-
0.17
27
-
0.026
9
0.13
11
0.10
17
0.048
3
0.1727
-
0.05
86
0.2287 1
DUALIT
Y
-
0.05
53
-
0.055
0
-
0.14
97
0.04
67
-
0.058
9
-
0.09
42
-
0.04
20
-
0.028
3
-
0.1034
-
0.19
41
-0.1538 -0.4493 1
SUPERV
-
0.06
82
0.032
7
0.00
53
-
0.02
04
0.007
8
-
0.09
08
0.12
89
-
0.056
7
-
0.1460
0.12
31
-0.1115 -0.0422
-
0.0152
1
4. International Journal of Advanced Engineering, Management and Science (IJAEMS) [Vol-3, Issue-5, May- 2017]
https://dx.doi.org/10.24001/ijaems.3.5.11 ISSN: 2454-1311
www.ijaems.com Page | 477
Table.3: shows the summary statistics for all variables. In general, since no outliers in data can be observed, OLS estimation
is appropriate. Then it is safe to go further with all estimations.
Table.3. Summary statistics of all variables
Variables Min Max Mean S.D
SIZE (Billion VND) 13.43 31.58 1.90 3.91
QRATIO (Times) 0.29 17.57 2.11 2.05
PROFIT (%) -45.40 44.30 4.00 22.10
DEBT (Times) 0.03 27.98 1.75 2.62
FASSETS (%) 2.00 89.10 22.30 17.90
LTIME (Years) 1.00 13.00 4.96 2.571
FOREIGN (%) 0.00 49.00 14.80 16.40
STATE (%) 0.00 79.70 17.80 22.80
BOARDSIZE (people) 4.00 11.00 6.53 1.69
BOARDCOMP (%) 0.00 100.00 63.90 17.20
4.2 Findings
The regression results are presented in table 4. The value
of VIF for all independent variables is much smaller than
10 (i.e. even smaller than 2), confirming that multi-
collinearity is not problematic. Moreover, Lagrange (LM)
test cannot reject the null hypothesis that no
autocorrelation in the error terms of the model (p-value =
0.5432). Likewise, White test also shows the absence of
heteroschedasticity in the model (p-value = 0.6565).2
From table 4, it can be seen that the coefficient of SIZE,
DEBT, AUDIT and SUPERV is positive and statistically
significant at the 5% level. However, the coefficient of
STATE, BOARDCOMP and DUALITY is statistically
negatively at the significance level of 10%, except for
STATE at the 5% level of significance. These findings can
be further discussed as follows.
Firstly, regression results show that corporate size (SIZE)
has a positive effect on its disclosure, implying that the
higher the sales, the more information firm discloses in
the financial statements. This is consistent with most
previous empirical studies, such as Raffournier, 1995;
Patton and Zelenka, 1997; Ahmed and Courtis, 1999;
Owusu-Ansah, 1998; Phuong and Phuong, 2014, ...), and
also in accordance with the agency theory and signaling
theory. In fact, an increase in sales can be considered as a
positive message about its businessesthat firm wants to
send to shareholders and other outsiders. This is
especially true for the real situations in Vietnam over the
studied period, where the Vietnamese economy has been
facing severe difficulties, and many firms have been
dissolved and bankrupted. Given these circumstances,
more good information (e.g., sales increases) is needed to
disclose in attempts to increase the confidence of
investors and credit institutions.
2
Available upon request.
Table.4: Regression results
Dependent variable:Corporate disclosure index (Ij)
Independent
variables
Coefficients Std. VIF
Constant 0.670*** 0.085
SIZE 0.008** 0.004 1.688
QRATIO -0.001 0.002 1.371
PROFIT 0.007 0.021 1.241
DEBT 0.004** 0.002 1.320
FASSETS -0.018 0.025 1.137
BIG4 0.052*** 0.012 1.453
LTIME 0.002 0.002 1.218
SECTOR -0.010 0.010 1.223
FOREIGN -0.033 0.033 1.627
STATE -0.034* 0.020 1.184
BOARDSIZE 0.003 0.003 1.251
BOARDCOMP -0.087*** 0.029 1.381
DUALITY -0.018* 0.010 1.368
SUPERV 0.043*** 0.010 1.089
No. of observations 198
R2
0.310
Adjusted-R2
0.257
F-statistic 5.866
Prob(F-statistic) 0.000
Durbin-Watson 1.991
Notes: *, ** and *** denote the significance levels of
10%, 5% and 1%, respectively.
5. International Journal of Advanced Engineering, Management and Science (IJAEMS) [Vol-3, Issue-5, May- 2017]
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As for debt ratio (DEBT), the results show that firmwitha
higher financial leverage tends to disclose more
information, since as firm utilizes more debt the
executives voluntarily disclose more information to
increase its position to creditors, as well as to meet the
information requirements by creditors. This is applicable
with the current context of Vietnam, in which the use of
excessive leverage by many firms have leaded to higher
risk of insolvency and bankruptcies. Hence, the corporate
disclosurehas become a way to show firm’s trust worthy
to creditors. This result is in line withsome others, e.g.,
Ahmed and Courtis, 1999; Barako, 2007, and is also
consistent with the signaling theory.For auditing firm
(AUDIT), it is obvious that firm audited by one of the
Big4-auditorshas a higher corporate disclosure degree
than the others.This shows a clear distinction between the
quality of a Big4-auditor and that of other auditors from
the perspectives of market participants in the country. As
audited by a member of Big4-auditors, firm seems to
bemore confident and ready to publish a greater amount
of detailed information to outsiders. This finding is
supported by previous research, (e.g., Patton and Zelenka,
1997; Barako, 2007; Wang, Sewon et al., 2008). In line
with Ho and Wong (2001), results show that the presence
of supervision board (SUPERV) has a positive influence
on the corporate disclosure degrees. Since the supervision
board is responsible for overseeing the board of directors
and managing director in implementing their due roles, its
existence is considered as a means to guarantee for the
credibility of financial statements to outsiders (Bradbury,
1990). However, contradicting to previous studies, results
for state ownership (STATE) in this study indicate that
firm with higher state-owned shares disclose less
information on financial statements than the others.
Although being contrast to other previous studies, this
finding isreasonable in the context of Vietnam. In
Vietnam, there historically exists a common belief that
state-dominated firms are problematic. Many state-
dominated firms suffered severely from a number of
problems such as poor performance, bad corporate
governance practices and disclosure of corruption by
managers who are also governmental officials. E.g., in
2014, more than 400 state-owned firms were bankrupted
and dissolved, namely bankruptcy of 92 enterprises
anddissolvent of 313.3
Therefore, the presence of state
ownership in firm does not necessarily mean an increase
in the corporate disclosure level. Surprisingly, the
coefficient of director board composition
(BOARDCOMP) shows a significantly negative sign,
3
http://kinhdoanh.vnexpress.net/tin-tuc/doanh-
nghiep/giai-the-pha-san-hon-400-doanh-nghiep-nha-
nuoc-2931637.html (Accessed on May, 5th
2017)
indicating that firm with a higher proportion of non-
executive members to total number of director board
tends to have a higher corporate disclosure degree. This is
counter evidence against the agency theory, proposing
that members of director board should not take any
executive role in the firm. Nevertheless, this opposite
effect (but is in line with Barako (2007)), may be
explained by the fact that a high proportion of non-
executive board member in director board may imply a
high number of managing executive members from
outside the firm. In an emerging market like Vietnam,
these outside executives tend to limit the corporate
disclosure as a way to protect firm’s businesses from its
competitors, which helps them to secure their positions in
the firm. As expected, the findings from dual role of
director board’s chairperson (DUALITY) point out that if
a company has a concurrent duty between chairperson
and general director, the corporate disclosure degreeis
reduced. In fact, as argued by the agency theory this dual
role can easily lead to power concentration, resulting in
possible manipulations of corporate financial activities, as
well as restrictions on information disclosure by firms.
The coefficient of all other independent variables
including QRATIO, PROFIT, FASSETS, LTIME,
SECTOR, FOREIGN and BOARDSIZEis not statistically
significant at the traditional significance levels.
Therefore, the statistical evidence about the influences of
these factors on the corporate disclosure cannot be found
in this study.
V. CONCLUSIONS AND POLICY
RECOMMENDATIONS
Due to the great importance of corporate disclosure on the
financial statements, many empirical studies have been
implemented for countries around the world. This study
investigates the determinants of corporate disclosure in
Vietnamese listed firms. Several findings from the study
can be summarized. Regression results show that as
predicted by the literature firm size, the use of financial
leverage and the presence of supervision board have a
positive effect on the corporate disclosure degree.
Moreover, firm audited by a member of Big4 group tends
to disclose more information than the others. However,
contradicting to the literature, those factors comprising of
state ownership and the proportion of non-executive
members in director board show a negative effect on
corporate disclosure.This counterevidence can be
explained by real situations in Vietnam. Finally, thisstudy
also supports the literature with the finding that firm with
the concurrent role between chair of director board and
managing director disclose less information than the
others.
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A number of recommendations have been put
forward.Firstly, policy makers should pay more attention
tothe quality of auditing firmsappointed to check financial
statements of listed firms, since market participants seem
to distinguish between financial statements audited by a
Big4 and those audited by other auditing firms.Besides,
stricter supervision rules should be considered on the
structure of corporate management to improve the
information disclosure quality by firms.
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