The role of top managers’ support in financial accounting information transparency in Vietnam’s public sector

Abstract

The Vietnamese economy has been strongly integrating with the world economy. As a result, the requirement to provide transparent financial accounting information has been putting considerable pressure on the public sector. Moreover, as the Government is promoting self-sufficiency in the public sector to reduce the burden on the governmental budget, top managers are the main decision-makers to the organizational, personnel, operational and financial issues in their companies. Therefore, the support of top managers can significantly affect the improvement of financial information transparency in the public sector. The research model takes the form of SEM and is evaluated using PLS-SEM methodology on the Smart PLS 3.2.7 software. The results from analyzing data from 164 Vietnam’s public companies confirm that the support of top managers has a direct impact on the accounting information system as observed from intermediate variables that reflect the relationship between top managers’ support and financial information transparency, namely chief accountant’s expertise, the availability and function of the hardware, software and the communication technology network.