The Factors Affecting the Level of Information Disclosure on Financial Statements in the Industrial Enterprises Listed on Ho Chi Minh Stock Exchange

Phan Thi Hai Ha,Hoang Thi Kim Thoa,Nguyen Quang Huy

doi:10.22158/jepf.v5n1p93

Abstract

<p><em>This research analyzes the factors affecting the level of information disclosure on financial statements in the industrial enterprises listed on Ho Chi Minh stock exchange. Using financial statements of 87 industrial enterprises of the fiscal year 2017, the research shows that there are 6 factors affecting and having a positive relations with the level of information disclosure. These include: the scale of business, Duration of operation, Audit firm reputation, Solvency, Financial leverage and Return on Equity (ROE). The result points to signals that help the State Securities Commission to control better of information disclosure of firms. In addition, the study recommends measures for shareholders, especially those in large companies to strengthen the supervision, control managers in the disclosure of business information.</em></p>

Highlights

Are financial reports important for the management of production and business in enterprises, they affect decision—making by other individuals and organizations
There are many questions that need to be addressed, including: Why don’t the enterprises announce honestly and timely their financial reports? What are the factors that affecting on the level of the enterprises’ financial disclosure? What are the direction and effect’s level of those factors? For those reasons, we decide to make the research “The factors affecting the level of information disclosure on financial statements in the industrial enterprises listed on Ho Chi Minh stock exchange”
The finding of this study reveals that financial leverage factor (X7) affects significantly positively the level of information disclosure

Summary

Introduction

Are financial reports important for the management of production and business in enterprises, they affect decision—making by other individuals and organizations. Vol 5, No 1, 2019 the development of Vietnam’s stock market and ensure the interests of stakeholders who use financial statements. In recent years, there are a number of financial reports that have declared insufficiently, inaccurately, and belatedly This has significantly affected investors’ interests, as well as lead to in inaccurate lending decision of banks and credit agencies and the decrease in shareholders’ trust. It makes negative effect on the development of Vietnam’s stock market. We decide to make the research “The factors affecting the level of information disclosure on financial statements in the industrial enterprises listed on Ho Chi Minh stock exchange”. The study results are expected to provide useful information for the agencies and managers in controlling and regulating the operation of Vietnam’s stock market efficient and sustainable way

Methods

Findings

Discussion

Conclusion