Quality Of Financial Statement Information Research Articles

Audit committee and the quality of financial reporting information - evidence in the new organisational structure of Vietnamese listed companies

The Audit Committee (AC) is a new part of organisational structure of a joint-stock company (JSCs), which has just been legislated in Vietnam since 2021. The AC aims to supervise activities to enhance the truthfulness and fairness of financial reporting information. The article aims to analyze and evaluate the actual effectiveness of the AC in improving the quality of financial statement information. The secondary data including 255 observations from listed companies that have established AC. We carried out analysis and forecast using the binary logistic model. The results show that the AC has played a primary role to improve the quality of financial statement information.

Effectiveness of International Financial Reporting Standard Enforcement in Nigeria

Background to the Study The general belief in accounting literature is that the adoption and application of IFRS in developing countries will enhance the quality of financial statement information including its reliability and comparability (Ballas, Skoutela and Tzovas, 2010). However, it is also argued that no matter how high the quality of the accounting standards adopted, comparable and high-quality accounting information will not be achieved without strict enforcement of these standards (White house, 2012). IFRS is “a set of accounting rules, principles and procedures that aim to create a common financial reporting platform with the objective of bringing transparency, accountability, efficiency to financial markets, harmonization of accounting practices and enforcement. Even though some countries claimed they have officially adopted IFRS and mandated companies to prepare financial statements accordingly, some companies may selectively implement IFRS recognition and disclosure requirements. Even with increasing IFRS adoption around the world, notable differences in financial reporting systems will remain due to regulatory, political, and institutional differences across countries, leading to variation in IFRS compliance between different jurisdictions (Soder storm and Sun, 2007). Such variation hinders the main goal of developing a global set of accounting standards which is comparability of accounting information across countries. Chen and Zhang (2010) provided empirical corroboration from the Chinese market that mere adoption of IFRS does not necessarily lead to the perceived high-quality and comparable financial accounting information because of enforcement challenges and lack of full compliance.

Determinants Factors Affecting Quality of Financial Statement Information: External Factors as Moderating Variables

AbstractThe purpose of this research is to provide knowledge related to the influence of the internal control system, the use of information technology and human resource capacity on the quality of financial statement information with external factors as moderating variables. The questionnaire used to gather the data for this study was distributed to 107 Lamongan district employees who work in the financial industry. This research proves that the internal control system, utilization of information technology and human resource capacity has a positive and significant impact on the quality of financial statement information. external factors have no influence on the capacity of human resources on the quality of financial statement information. Future studies may select a wider sample, such as the Provincial Government.Keywords:Internal control system, utilization of information technology, human resource capacity and quality of financial report information.

Upaya Peningkatan Kualitas Informasi Laporan Keuangan Melalui Proyek Desain Akuntansi

UMKM merupakan unit usaha mikro, kecil dan menengah dari masyarakat yang senantiasa perlu mendapatkan pendampingan dan juga pelatihan guna mendukung program pemerintah. Kami melakukan pelatihan dan pendampingan dalam pencatatan pembukuan secara sederhana dan praktis Sesuai hasil survey bahwa pemilik “Ning Har Sambel Pecel Suroboyo” selama ini hanya membuat laporan keuangan sebatas mencatat saja. Untuk itu dalam upaya meningkatkan kualitas informasi laporan keuangan, maka perlu dilakukan penyuluhan. Dengan melalui program Pengabdian Masyarakat Pemanfaatan Ipteks Bagi Masyarakat (PIKAT) Kami berupaya untuk membantu UMKM dalam melakukan pencatatan pembukuan keuangan secara praktis dan mudah dengan menggunakan bantuan aplikasi yang didesain sedemikian rupa, agar mudah difahami dan dapat meningkatkan pengetahuan serta keterampilannya. Sehingga hasil informasi dari laporan keuangannya dapat dengan cepat dan mudah diperoleh serta berkualitas, terutama oleh pihak manajemen. Hasil penyuluhan ini, menunjukkan bahwa pemilik UMKM menerapkan ilmu akuntansi yang telah diberikan serta menggunakan aplikasi Count & Grow dalam pencatatan keuangannya, dan omzet UMKM semakin meningkat. Dengan demikian kualitas informasi atas laporan keuangan dapat membantu UMKM dalam mengatur kondisi keuangan menjadi lebih baik dan dapat digunakan sebagai dasar dalam pengambilan keputusan.

Building the Model to Measure the Quality of Financial Statements – A Case Study of Vietnamese Enterprises Listed on the Stock Market

Bloomberg's recent recognition of Vietnam as Asia’s “new tiger economy” is not coincidental. The country is experiencing a surge in mergers and acquisitions (M&A) activities, with foreign billionaires acquiring majority stakes in major Vietnamese enterprises. However, obstacles hinder foreign investment, mainly due to the poor and unclear quality of financial statements, as reported by the World Bank and IMF in 2014. Drawing from agency theory (Jensen and Meckling, 1976) and asymmetric information theory (Akerlof, Spence, and Stiglitz, 1970), we aim to develop a model that measures the quality of financial statement information. By consulting with experienced academics, experts, and specialists in accounting and auditing, we identify factors that impact the quality of financial statements. We employ qualitative analysis and the CFA and EFA methods to validate these impacting factors, conducting surveys with listed enterprises in Vietnam. Based on our findings, we will propose solutions to enhance the quality of financial statements. Our case study focuses on listed enterprises in the Vietnam Stock market, as it is the primary and most effective platform for attracting direct investment through M&A activities and investment funds.

Tác động của công nghệ thông tin và truyền thông đến chất lượng thông tin báo cáo tài chính dưới sự điều tiết của sở hữu Nhà nước

This research aims to assess the significance of state ownership in moderating the influence of Information & Communication Technologies on the quality of financial statement information of non-financial listed enterprises in Vietnam from 2016 to 2020 and using data from 231 non-financial listed enterprises in Ho Chi Minh City Stock Exchange. The Poold-OLS, fixed-effects model, random-effects model, and Driscoll- Kraay standard error methods were employed. The finding shows that Information & Communication Technologies has a positive effect on the quality of financial statement information. Moreover, state-owned can moderate the relationship between Information & Communication Technologies and the quality of financial statement information. Accordingly, the research results recommend that the Government should strengthen policies to promote development of Information & Communication Technologies to improve the quality of financial statement information.

DETERMINAN KUALITAS INFORMASI LAPORAN KEUANGAN PEMDA KABUPATEN MALAKA

The purpose of this study was to determine the factors that influence the quality of financial reporting information for the local government of Malacca Regency. This is because the quality of financial information will greatly determine decisions and describe the quality of the financial managers themselves. The variables used in this study are human resources, technology utilization, internal control systems and the quality of financial reports. The hypothesis in this study is that human resources, technology utilization and internal control systems have a partial and significant effect on the quality of financial reports. In this study, the questionnaire section was used in the data collection method. The sample in this study amounted to 155 employees within the scope of the Regional Work Unit of the Malacca Regency Government. The results of this study prove that human resources, the use of information technology significantly affect the quality of financial statement information with a significance level of 0.002 and 0.10. Meanwhile, internal control has no effect on the quality of financial reporting information. The contribution of human resource variables, control systems, use of technology to the quality of financial reports is 56.7%.

Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Does Financing Decision-Making by Regional Government-Owned Syariah Banks Depend on Financial-Information Quality and Managers' Characteristic?

This study examines the impact of financial information quality on managers’ financing decision-making. It also investigates the role of managers’ characteristics – educational background, gender, and working period – on the relationship between the quality of financial statement information and financing decision-making. The samples were finance managers at Bank Aceh Syariah, a Syariah bank owned by the regional government in Aceh, consisting of 24 finance managers at the branch offices and 86 finance managers at sub-branches that spread throughout Aceh. The data was obtained by using a questionnaire distributed using google form. A multivariate analysis was used to test the hypothesis. The results showed that the quality of financial statement information has a positive effect on financing decisions. It becomes the basis for managers in making financing decisions in Islamic banks owned by local governments. Managers’ characteristics do not influence financing decisions and do not strengthen or weaken managers in making financing decisions based on financial statements. The result confirms hypothesis 1, however, it does not support any other hypotheses regarding finance managers’ characteristics. Therefore, it is suggested for future research to broaden and compare the characteristics of finance managers of national Islamic banks in Indonesia and Islamic banks from other countries to capture comprehensive results.

Kualitas Laporan Keuangan Sebelum dan Sesudah Penerapan Aplikasi MYOB pada UD Keluarga di Kota Payakumbuh

This study aims to determine whether the MYOB application can be used as a tool for recording financial statements effectively and efficiently at UD. Family in Payakumbuh. Jenis data used are primary data and secondary data. Method of data analysis conducted in this research is descriptive qualitative analysis and comparative analysis. The results of this study show that with the existence of computer-based accounting system, especially MYOB is very helpful business management, because the report produced more up to date and MYOB can improve the quality of financial statement information with speed, accuracy, completeness, etc. can clearly analyze each transaction there every day. The author suggests to UD. Family, to record all transactions that occur into MYOB so that it can further increase security in data storage and need training in order to run MYOB and be in accordance with accounting principles so that they can compile financial reports in a timely manner and can retrieve information quickly.

Perlakuan Akuntansi Agrikultur Berbasis Maqashid Al-Syariah

The purpose of this study was to determine how the quality of financial statement information on PT. Perkebunan Nusantara XIV is seen from biological assets recognition, measurement, and disclosure in terms of concept maqashid al-sharia and PSAK 69. This type of research is qualitative research with an interpretive paradigm approach. The results showed that PT. Perkebunan Nusantara XIV, in terms of recognition, measurement, and disclosure of biological assets, was by the applicable standards, namely the statement of PSAK 69: Agriculture. With the accounting treatment of biological assets following the applicable PSAK, the quality of financial statement information becomes relevant and reliable so that it makes it easy for users to understand financial statements. Especially for management, it can be used as the basis for making the right decisions. Judging from the concept of maqashid al-sharia, researchers have not been able to reveal the overall implementation of this concept in the work environment of PT. Perkebunan Nusantara XIV. Nevertheless, in applying the maqashid al-shariah concept, the head of the accounting and reporting division has implemented managing biological assets and preparing financial reports so that the financial reports are relevant and reliable.

ANALISIS RELEVANSI INFORMASI, RELIABILITAS, DAN ASIMETRI INFORMASI SETELAH PENGADOPSIAN IFRS (STUDI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2009-2014)

The objectives of the research are to examine the impact of adoption of IFRS in Indonesia on quality of financial statement information in terms of relevance and reliability and to examines information asymetry. The Relevance is measured by combined value relevance of book value of equity and net income, reliability is measured by absolute discretionary accrual as an inverse measure, and information asymetry is measured by bid ask spread. Data were collected from the financial statements of the manufacture companies that listed at Indonesia Stock Exchange. Research conduct in 6 years (2009-2014). By using purposive sampling and balanced panel data, there are 31 companies fulfilling the sample criteria. Multiple linier regression and paired sample t-test model is used to test the hypothesis. The results showed that there is an increasing quality of financial statement information after the adoption of IFRS but no difference in information asymmetry after the adoption of IFRS

Competencies of Apparatus and Internal Control System Effect on The quality of Financial Statement Information and Good Governance

The purpose of this study was to analyze the effect of the competencies of the apparatus and internal control systems on the quality of financial statement information and good governance. The study was conducted at the Makassar City Government. The population in this study was 44 Indonesian: Regional Working Unit (SKPD) in the Makassar City Government consisting of 687 people, and a sample of 268 respondents were obtained through the Slovin formula. Data from the questionnaire were analyzed using the Structural Equation Model using AMOS 18. The results found that the overall variables studied were apparatus competence and internal control systems both directly and indirectly had a positive and significant effect on the quality of financial statement information and good governance in the City Government Makassar. The dominant direct effect is the internal control system on the quality of financial statement information and good governance in the Makassar City Government. The dominant indirect effect is the internal control system through the quality of financial statement information on good governance in the Makassar City Government.

Determinants Influencing the Conversion of Financial Statements: The Case of Multinational Firms in Vietnam

The research aims to investigate the impact levels of determinants on the conversion of financial statements from Vietnamese accounting standards (VAS) to International financial reporting standards (IFRS) in the multinational firms in Vietnam. The method of data collection was done through the survey and subjects are accountants in Multinational Firms doing business in Hanoi and ten neighboring provinces. After checking the information on the votes, there are 170 questionnaires with full information for data entry and analysis. We use Cronbach's Alpha, EFA analysis and run regression model to investigate the impact levels of each independent variable on dependent variable of the conversion of VAS financial statements to IFRS. The results show that five determinants including Economic, Politics, Law, Culture, and Conditions for implementation have positive relationships with the conversion of VAS financial statements to IFRS. In particular, Economic determinant is the most strongest. Based on the findings, some recommendations are given for improving the conversion of VAS financial statements to IFRS of multinational firms doing business in the context of Vietnam. The results are considered a useful reference for firms when making financial statements to transparently change the financial statement information and improve the quality of financial statement information.

Factors Affecting Quality of Information on Financial Statement in Autonomous State University

Financial statements are a major tool used as a measurement tool to assess the performance of profit-oriented institutions (profit-oriented) and non-profit institutions (not profit-oriented). Hasanuddin University is part of a non-profit institution that has an interest in having quality financial reports. This research aims to find out the factors that influence the quality of financial statement information at Hasanuddin University. The method used in this study is a quantitative research method that has a level of associative explanation. The population in this study is all financial management employees who work in the finance department of the 3rd Floor of the Rectorate of Hasanuddin University. While the sample selection uses the total sampling method with a total sample of 62 people. The results of this study are of the four variables namely human resource competency, technology utilization, leadership support, and funding support which have the most significant influence, namely human resource competence, then successive variables of financial support, leadership support, and technology utilization variables. The competency of human resources is very influential on the quality of the financial statements of Hasanuddin University. The better the competence of human resources, the better the quality of the financial statement of Hasanuddin University. So it is important to increase the knowledge of human resources about processing financial statements and to provide training in accordance with what is needed.

Apakah pengendalian intern berpengaruh pada kualitas informasi laporan keuangan?

This research aims to determine the effect of accrual-based application, internal control, IT utilization and HR competency on the quality of financial statement information. The research is a quantitative approach with primary data source. The population in this research was 29 Organisasi Perangkat Daerah (OPD) of Sleman Regency. The sample in this research amounted to 107 respondents taken using a purposive sampling. Data collection in this research using a questionnare. The data analysis using a multiple regression. The result of this research show that the accrual-based application, IT utilization and HR competency have a positive effect on the quality of financial statement information, while internal control has no significant affect on the quality of financial statement information.

The development of good governance model for performance improvement

Purpose The purpose of this paper is to re-test the determinant factors of the quality of financial statements and performance of the government by adding contextual factors, such as the personal factor, system/administrative factor and political factor, that may affect the quality of financial statement information and performance of the government. The personal factor is proxied to the competencies that affect the quality of financial statements and performance. The social administrative factor is proxied on the regulations and presentation of quality financial statements. Design/methodology/approach The analysis unit in this study was conducted at the organizational level. The research object was in the South Sulawesi Province. This was a descriptive and verificative research with a survey technique. Based on the objectives of the research, this is an explanatory study. The research method used was an explanatory survey with a quantitative approach. The population of this research was proxied to the Regional Unit Organization (Organisasi Perangkat Desa/OPD) which compiled the financial statements in the South Sulawesi Provincial Government and consisted of 803 units of local government agencies (Satuan Kerja Perangkat Daerah or SKPD). The purposive sampling technique was chosen under the following criteria: the regional government whose financial statement has been audited by the BPK, the regional government whose financial accountability report has been evaluated by Indonesia’s Agency for Financial, and Development Supervision (Badan Pengawasan Keuangan dan Pembangunan or BPKP). In line with the criteria mentioned above, the minimum samples required for 26 observations/indicators are 5 × 26 = 130 respondents. The sample size met the minimum sample requirement of five for each group (cell) (Hair et al., 2006, p. 112). Findings The personal factor “competence” affects the financial statements’ quality. The high personal factor “competence” will affect the high financial statements’ quality. The system/administration factor “regulation” affects the financial statement quality. The high system/administration factor “regulation” will affect the high financial statements’ quality. Political factors affect the financial statements’ quality. The high political factors will affect the high financial statements’ quality. The personal factor “competence” has no direct effect on the performance. The high personal factor “competence” will not affect the high or low of the performance. However, there is a significant indirect effect between the personal factor “competence” on performance through the financial statements’ quality, which means that the higher personal factor “competence” will lead to higher performance through financial statements’ quality. The system/administration factor “regulation” does not directly affect the performance. The high system/administration factor “regulation” will not affect the high or low of the performance. However there is a significant indirect effect between the system/administration factor “regulation” on performance through the financial statements’ quality which means that higher system/administration factor “regulation” will lead to higher performance through financial statements’ quality. The political factor does not directly affect the performance. The high political factors will not affect the high or low of the performance. However there is a significant indirect effect between political factors on performance through the financial statements’ quality which means that the higher political factor will lead to higher performance through the financial statements’ quality. Financial statements’ quality affects the performance. The high financial statements will affect the performance. Originality/value The research issues raised are the increasing public demands for the government services and accountability, while on the other hand, the government is faced with the report and financial quality that are below the expectation. This issue is a national strategic issue, leading this research to aim at providing guidelines that can help the regional government to formulate operational policies and strategies for the quality improvement of financial statement and performance of the regional government.

Impact of internal factors on the financial statements information quality of enterprises in Vietnam

This research aims to construct scales to measure the quality of financial statement information directly based on sets of characteristics of financial statements quality, published by FASB & IASB 2010. Additionally, based on qualitative research, the study identifies five internal factors affecting the relevance of financial statements information quality, including: earnings management behaviors, top management support, education and training, internal control system efficiency and accountants’ competencies. Based on quantitative research, the study constructed regression model showing the influence of 4 factors, namely earnings managements, top management support, education and training, and accountants competencies om the relevance of financial statements information quality.

Quality of Information and the Moderating Effect of Board Size on SME Financial Structure: Malaysian Evidence

This study examines whether the quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Furthermore, it also make the first attempt to test the moderating effect of board size on the relationship between quality of information and leverage decision. Malaysian SMEs are used because there are important differences in the magnitude of disclosure requirements among them. A sample size of 100 SMEs has been considered to do the empirical evaluation. The Ordinary Least Squares (OLS) regression was used to analyze the identified firm-specific variables that affect financial structure. In contrast with the traditional view that asymmetric or incomplete information restricts access to external funds, the results indicate that the quality of financial statement information is not significantly related to SME leverage. Board size does not exert any influence on the relationship between quality of information and leverage decision. However, leverage is negatively related to total assets and profitability.

Determinant factor of the quality of financial statements and performance of the government by adding contextual factors

Purpose The purpose of this paper is to re-test the determinant factors of the quality of financial statements and performance of the government by adding contextual factors, such as personal factor, system/administrative factor and political factor, that may affect the quality of financial statement information and performance of the government. Personal factor is proxied to the competencies that affect the quality of financial statements and performance. Social administrative factor is proxied on the regulations and presentation of quality financial statements. Design/methodology/approach The analysis unit in this study was conducted at the organizational level. The research object was in South Sulawesi Province. This was a descriptive and verificative research with survey technique. Based on the objectives of the research, this is an explanatory research. The research method used was explanatory survey with quantitative approach. The population of this research was proxied to the Regional Unit Organization (Organisasi Perangkat Desa) which compiled the financial statements in South Sulawesi Provincial Government consisted of 803 units of Local Government Agencies (Satuan Kerja Perangkat Daerah). The purposive sampling technique was chosen under the following criteria: the regional government whose financial statement has been audited by Badan Pemeriksa Keuangan; the regional government whose financial accountability report has been evaluated by Indonesia’s Agency for Financial and Development Supervision (Badan Pengawasan Keuangan dan Pembangunan). In line with the criteria mentioned above, the minimum samples required for 26 observations/indicators are 5×26=130 respondents. The sample size met the minimum sample requirement of 5 for each group (cell) (Hair et al., 2006, p. 112). Findings Personal factors competence affects the financial statements quality. The high personal factors competence will affect on the high financial statements quality. System/administration factors regulation affect the financial statement quality. The high system/administration factors regulation will affect on the high financial statements quality. Political factors affect the financial statements quality. The high political factors will affect on the high financial statements quality. Personal factor competence has no direct effect on the performance. The high personal factor competence will not affect the high or low of the performance. However, there is a significant indirect effect between personal factor competence on performance through the financial statements quality which means that higher personal factor competence will lead to higher performance through financial statements quality. System/administration factor regulation is not directly affects the performance. The high system/administration factor regulation will not affect on the high or low of the performance. However, there is a significant indirect effect between system/administration factor regulation on performance through the financial statements quality which means that higher the system/administration factor regulation will lead to higher performance through financial statements quality. Political factors is not directly affects the performance. The high political factors will not affect the high or low of the performance. However, there is a significant indirect effect between political factors on performance through the financial statements quality which means that the higher the political factor, it will leads to higher performance through the financial statements quality. Financial statements quality affects the performance. The high financial statements will affect on the performance. Originality/value The research issues raised are the increasing public demands for the government services and accountability, while on the other hand the government is faced with the report and financial quality that are below the expectation. This issue is a national strategic issue, leading this research to aim at providing guidelines that can help the regional government to formulate operational policies and strategies of the quality improvement of financial statement and performance of the regional government.