The effect of management factors on financial information transparency of listed real estate companies in Viet Nam

Abstract

In recent years, the real estate sector in Vietnam has experienced rapid development and made significant contributions to the country's overall growth, notably in job creation and national income. Transparency in financial information is one of the key factors facilitating the development of individual companies and the real estate industry. This study aims to assess the impact of managerial factors on financial information transparency within companies. Data was collected from the financial reports of 20 publicly listed real estate companies in Vietnam from 2012 to 2021. The research findings indicate that the proportion of audited financial reports with unqualified opinions ranged from 17 to 18 out of 20 reports annually. The average score for financial information transparency was 26.23 out of 40 points. We utilized panel data estimate methods, including fixed and random effects models, to explore the relationships between variables and financial information transparency. The research findings indicated that variables such as company size based on assets, market value/book value ratio, and board of directors size positively impacted on the transparency of company financial information. In contrast, variables like return on total assets, the proportion of female board members, gender of the board chairman, concurrent rights of the board chairman, and the number of board of directors' meetings had negative effects on the financial information transparency of these companies. These variables collectively explained 9.4% of the variation in the financial information transparency of the researched real estate companies.