Abstract
PurposeThe purpose of this study is to examine the financial autonomy that affects the financial accounting information quality of public organizations. This study also tests the impact of the financial autonomy on support from leadership. How this impact has affected elements of accounting information systems such as hardware, software, communications technology and chief accountant to support providing the quality of the financial accounting information.Design/methodology/approachThe research model is in the SEM form and measurement models are reflective scales so this study applies the PLS-SEM analysis technique on the Smart PLS 3.2.7 software to test the research hypotheses. Analytical data is collected through survey questionnaires with observed variables measured using the typical 7-point Likert scales. The result obtained after cleaning the data includes 164 Vietnamese public organizations with the different levels of the financial autonomy.FindingsThis research has three primary findings: firstly, FA has a positive direct effect on FAIQ and SL. Secondly, SL influences FAIQ through four mediate variables including AM, HW, SW and CN. Finally, SL also acts as a mediate variable in the relationship of FA and FAIQ.Originality/valueThis is one of the first empirical studies to examine the role of financial autonomy in leadership support to improve the quality of the accounting information in the public sector in the context of the Vietnamese government is promoting the financial autonomy of public organizations.
Highlights
In the public sector, accounting information quality affects the development of the national economy and enhances citizens’ trust (Beshi and Kaur, 2020)
The research results show that the degree of variation in financial accounting information quality in Vietnamese public organisations is significantly explained by factors in the research model (57.9%), including knowledge of the chief accountant, availability and function of hardware devices, level of financial autonomy, availability and function of communication network, and availability and function of software
In practical terms, the study results are the basis for public organisations and the government to formulate policies to enhance accounting information quality in the Vietnamese public sector
Summary
In the public sector, accounting information quality affects the development of the national economy and enhances citizens’ trust (Beshi and Kaur, 2020). Public organisations use the state budget to manage or provide public services to society, so the government, citizens, donors and investors have the right to control whether these entities use the state budget properly and effectively by analysing quality accounting information (Bakar et al, 2011). Public organisations can demonstrate their responsiveness, accountability and transparency by providing quality accounting information, which has a significant effect on reducing corruption in the public sector and. The full terms of this licence may be seen at http://creativecommons. org/licences/by/4.0/legalcode
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