A Case Study of Voluntary Disclosure By Vietnamese Listed Companies

Author(s)

Ta Quang Binh ,

Download Full PDF Pages: 36-53 | Views: 386 | Downloads: 116 | DOI: 10.5281/zenodo.3455964

Volume 3 - April 2014 (04)

Abstract

The study intends to make practical contributions to the literature on voluntary disclosure and corporate governance in the context of integration in Vietnam through investigating annual reports. First, this paper indicated that, independent variables of firm size, profitability, audit committee and dual leadership, those belong to firms’ characteristics; ownership structure and corporate governance are all positively associated with level of voluntary information practices. Second, the study also reported the different influential levels of such independent variables on all categories of disclosure information. It means that, each independent variable is significantly associated with one or several categories, but not with the others. Last but not least, this study recommends corporations to strengthen supervision and monitoring the performance of information disclosure of listed companies, on the other hand they need to improve the quality, content and diversify means of information disclosure

Keywords

Annual reports, government ownership, influential factors, ownership structure, Vietnam, voluntary disclosure. 

References

  1. Ahmed, K., and J. K. Courtis (1999) “Associations between corporate characteristics and disclosure levels in annual reports: a meta-analysis,” British Accounting Review, Vol. 31, No. 1, pp. 35-61.
  2. Ahmed, K., and D. Nicholls (1994) “The impact of non-financial company characteristics on mandatory compliance in developing countries: the case of Bangladesh,” The International Journal of Accounting, Vol. 29, No. 1, pp. 60-77.
  3. Akhtaruddin, M., M. A. Hossain, and L. Yao (2009) “Corporate governance and voluntary disclosure in corporate annual reports of Malaysian listed firms,” Journal of Applied Management Accounting Research, Vol. 7, No. 1, pp. 1-19.
  4. Al-Shammari, B. (2008) “Voluntary disclosure in Kuwait corporate annual reports,” Review of Business Research, Vol. 8, No. 1, pp. 62-81.
  5. Barako, D. G. (2007) “Determinants of voluntary disclosures in Kenyan companies annual reports,” African Journal of Business Management, Vol. 1, No. 5, pp. 113-128.
  6. Barako, D. G., P. Hancock, and I. H. Y. Izan (2006) “Factors influencing voluntary corporate disclosure by Kenyan companies,” Corporate Governance: An International Review, Vol. 14, No. 2, pp. 107-125.
  7. Belkaoui-Riahi, A. (2001) “Level of multi-nationality, growth opportunities and size as determinants of analysts ratings of corporate disclosures,” American Business Review, Vol. 19, No. 2, pp. 115-220.
  8. Berglöf, E., and A. Pajuste (2005) “What do firms disclosure and why? Enforcing corporate governance and transparency in Central and Eastern Europe,” Oxford Review of Economics Policy, Vol. 21, No. 2, pp. 178-197.
  9. Binh, T. Q. (2012) “Voluntary Disclosure Information in the Annual Reports of Non-Financial Listed Companies: The Case of Vietnam,” Journal of Applied Economics and Business Research, Vol. 2, No. 2, pp. 69-90.
  10. Bushee, B., D. Matsumoto, and G. Miller (2003) “Open versus closed conference calls: the determinants and effects of broadening access to disclosure,” Journal of Accounting and Economics, Vol. 34, No. 1, pp. 149-180.
  11. Carson, E., and R. Simnett (1997) “Voluntary disclosure of corporate governance practices,” Working Paper, University of New South Wales.
  12. Çelik, O., A. Ecer, and H. Karabacak (2006) “Disclosure of forward-looking information: evidence from listed companies on Istanbul stock exchange (ISE),” Investment Management and Financial Innovations, Vol. 3, No. 2, pp. 197-216.
  13. Chau, G. K., and S. J. Gray (2002) “Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore,” The International Journal of Accounting, Vol. 37, No. 2, pp. 247-265.
  14. Chen, J. P. C., and B. L. Jaggi (2000) “The association between independent nonexecutive directors, family control and financial disclosures in Hong Kong,” Journal of Accounting and Public Policy, Vol. 19, No. 4, pp. 285- 310.
  15. Chow, C. W., and A. W. Boren (1987) “Voluntary financial disclosure by Mexican corporations,” The Accounting Review, Vol. 62, No. 3, pp. 533-541.
  16. Cooke, T. E. (1989) “Voluntary corporate disclosure by Swedish companies,” Journal of International Financial Management and Accounting, Vol. 1, No. 2, pp. 171-195.
  17. Craswell, A. T., and S. L. Taylor (1992) “Discretionary disclosure of reserve by oil and gas companies: an economic analysis,” Journal of Business Finance and Accounting, Vol. 19, No. 2, pp. 295-308.
  18. Depoers, F. (2000) “A cost-benefit study of voluntary disclosure: some empirical evidence from French listed companies,” European Accounting Review, Vol. 9, No. 2, pp. 245-263.
  19. Eng, L. L., and Y. T. Mak (2003) “Corporate governance and voluntary disclosure,” Journal of Accounting and Public Policy, Vol. 22, No. 4, pp. 325-345.
  20. Fama, E. F., and M. C. Jensen (1983) “Separation of ownership and control,” Journal of Law and Economics, Vol. 26, No. 2, pp. 301-325.
  21. Ferguson, M. J., K. C. Lam, and G. M. Lee (2002) “Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong,” Journal of International Financial Management and Accounting, Vol. 13, No. 2, pp. 125-152.
  22. Firer, C., and G. Meth (1986) “Information disclosure in annual reports in South Africa,” The International Journal of Management Science, Vol. 14, No. 5, pp. 373-382.
  23. Forker, J. J. (1992) “Corporate governance and disclosure quality,” Accounting and Business Research, Vol. 22, No. 86, pp. 111-124.
  24. Ghazali, N., and P. Weetman (2006) “Perpetuating traditional influences: voluntary disclosure in Malaysia following the economic crisis,” Journal of International Accounting, Auditing and Taxation, Vol. 15, No. 2, pp. 226- 248.
  25. Grundy, B. D., and M. McNichols (1989) “Trade and revelation of information through prices and direct disclosure,” Review of Financial Studies, Vol. 2, No. 4, pp. 495-526.
  26. Gul, F. A., and S. Leung (2004) “Board leadership, outside directors’ expertise and voluntary corporate disclosures,” Journal of Accounting and Public Policy, Vol. 23, No. 5, pp. 351-379.
  27. Hagerman, R. L., and M. Zmijewski (1979) “Some economic determinants of accounting policy choice,” Journal of Accounting and Economics, Vol. 1, No. 2, pp. 141-161.
  28. Haniffa, R. M. and T. E. Cooke (2002) “Culture, corporate governance and disclosure in Malaysian corporations,” Abacus, Vol. 38, No. 3, pp. 31 7-350.
  29. Ho, P. L., G. Tower, and G. Taylor (2008) “The influence of ownership structure on the pattern of corporate information among Malaysian listed firms,” 20th Asia- Pacific Conference on International Accounting Issues, Paris, 9-12 November.
  30. Ho, S. S. M., and K. S. Wong (2000) “A comparison of annual report preparers’ and users’ perceptions of the value of selected voluntary disclosure items and their actual disclosure by firms,” 12th Asian-Pacific Conference on International Accounting Issues, Beijing, 20-24 October.
  31. Ho, S. S. M. and K. S. Wong (2001) “A study of the relationship between corporate governance structure and the extent of voluntary disclosure,” Journal of International Accounting Auditing and Taxation, Vol. 10, No. 2, pp. 139-156.
  32. Hossain, M. and M. Helmi (2009) “Voluntary disclosure in the annual reports of an emerging country: the case of Qatar,” Advances in Accounting, Incorporating Advances in International Accounting, Vol. 25, No. 2, pp. 255-265.
  33. Hossain, M., L. M. Tan, and M. Adams (1994) “Voluntary disclosure in an emerging capital market: some empirical evidence from companies listed on the KLSE,” International Journal of Accounting, Vol. 29, No. 4, pp. 334- 351.
  34. Hossain, M., M. H. B. Perera, and A. R. Rahman (1995) “Voluntary disclosure in the annual reports of New Zealand companies,” Journal of International Financial Management and Accounting, Vol. 6, No. 1, pp. 69-87.
  35. Inchausti, B. G. (1997) “The influence of company characteristics and accounting regulation on information disclosed by Spanish firms,” European Accounting Review, Vol. 6, No. 1, pp. 45-68.
  36. Jiang, H. and A. Habib (2009) “The impact of ownership concentration and voluntary disclosure practice in New Zealand,” Accounting Research Journal, Vol. 22, No. 3, pp. 275-304.
  37. Karim, A. K. (1995), “Provision of corporate financial information in Bangladesh,” PhD Dissertation, The University of Leeds.
  38. Khlifi, F., and A. Bouri (2007) “Determinants of internet financial reporting,” Investment Research and Analysis Journal, Vol. 1, No. 2, pp. 4-15.
  39. Ku Ismail, K., and R. Chandler (2005) “Disclosure in the quarterly reports of Malaysian companies,” Financial Reporting, Regulation and Governance, Vol. 4, No. 1, pp. 1-25.
  40. Kumar, J. (2004) “Does ownership structure influence firm value? Evidence from India,” Working Paper, Indira Gandhi Institute of Development Research.
  41. Lang, M., and R. Lundholm (1993) “Cross-sectional determinants of analyst ratings of corporate disclosure,” Journal of Accounting Research, Vol. 31, No. 2, pp. 246-271.
  42. Lev, B., and S. H. Penman (1990) “Voluntary forecast disclosure, nondisclosure, and stock prices,” Journal of Accounting Research, Vol. 28, No. 1, pp. 49-76.
  43. Malone, D., C. Fries, and T. Jones (1993) “An empirical investigation of the extent of corporate financial disclosure in the oil and gas industry,” Journal of Accounting, Auditing, and Finance, Vol. 8, No. 3, pp. 249-275.
  44. McMullen D. A. (1996) “Audit committee performance: an investigation of the consequences associated with audit committees,” Auditing: A Journal of Practice and Theory, Vol. 15, No. 1, pp. 87-103.
  45. McNally, G. M., L. H. Eng, and C. R. Hasseldine (1982) “Corporate financial reporting in New Zealand: an analysis of user preferences, corporate characteristics and disclosure practices for discretionary information,” Accounting and Business Research, Vol. 13, No. 49, pp. 11-20.
  46. Meek, G. K., C. B. Roberts, and S. J. Gray (1995), “Factors influencing voluntary annual report disclosures by U.S., U.K. and Continental European multinational corporations,” Journal of International Business Studies, Vol. 26, No. 3, pp. 555-572.
  47. Naser, K., K. Al-Khatib, and Y. Karbhari (2002) “Empirical evidence on the depth of corporate information disclosure in developing countries: the case of Jordan,” International Journal of Commerce and Management, Vol. 12, No. 3, pp. 122-155.
  48. Naser, K., and R. Nuseibeh (2003) “Quality of financial reporting: evidence from the listed Saudi nonfinancial companies,” The International Journal of Accounting, Vol. 38, No. 1, pp. 41-69.
  49. Nazli, M. G., and P. Weetman (2006) “Perpetuating traditional influences: voluntary disclosure in Malaysia following the economic crisis,” Journal of International Accounting, Auditing and Taxation, Vol. 15, No. 2, pp. 226-248.
  50. Ng, E. J., and H. C. Koh (1994) “An agency theory and profit analytical approach to corporate non-mandatory disclosure compliance,” Asia-Pacific Journal of Accounting, Vol. 1, No.1, pp. 29-44.
  51. Owusu-Ansah, S. (1998) “The impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe,” The International Journal of Accounting, Vol. 33, No. 5, pp. 605–631.
  52. Patton, J. and I. Zelenka (1997) “An empirical analysis of the determinants of the extent of disclosure in annual reports of joint stock companies in the Czech Republic,” The European Accounting Review, Vol. 6, No. 4, pp. 605-626.
  53. Raffournier, B. (1995) “The determinants of voluntary financial disclosure by Swiss listed companies,” European Accounting Review, Vol. 4, No. 2, pp. 261-280.
  54. Raida C., and M. Hamadi (2008) “Board composition, ownership structure and voluntary disclosure in annual reports: evidence from Tunisia,” PhD Dissertation, Laboratoire Interdisciplinaire de Gestion Université-Entreprise (LIGUE).
  55. Rechner, P., and D. R. Dalton (1991) “CEO duality and organizational performance,” Strategic Management Journal, Vol. 12, No. 2, pp. 155-160.
  56. Rhodes, G., L. A. Zebrowitz, A. Clark, M. Kalick, A. Hightower, and R. McKay (2001) “Do facial averageness and symmetry signal health,” Evolution and Human Behavior, Vol. 22, No. 1, pp. 31–47.
  57. Rouf, M. A. (2011) “The relationship between corporate governance and value of the firm in developing countries: evidence from Bangladesh,” The International Journal of Applied Economics and Finance, Vol. 5, No. 3, pp. 237-244.
  58. Singhvi, S., and H. Desai (1971) “An empirical analysis of the quality of corporate financial disclosure,” The Accounting Review, Vol. 46, No. 1, pp. 129-138.
  59. Singhvi, S. (1968) “Characteristics and implications of inadequate disclosure: a case study of India,” International Journal of Accounting, Vol. 3, No. 2, pp. 29-43.
  60. Skinner, D. J. (1994) “Why firms voluntarily disclose bad news,” Journal of Accounting Research, Vol. 32, No.1, pp. 38-60.
  61. Summa, M. G., and C. A. Ben (2006) “La communication financière et la structure de propriété: le cas français,” Working Paper, Congrès de l’ATSG 2006 à Hammamet, Université Paris Dauphine IX.
  62. Trabelsi, S., R. Labelle, and C. Laurin (2004) “The management of financial disclosure on corporate websites: a conceptual model,” Canadian Accounting Perspective, Vol. 3, No. 2, pp. 235-259.
  63. Vu, K. A., Tower, G. D., and Scully, G. A., (2011) “An analysis of Vietnamese companies’ communication,” Proceeding of the American Accounting Association’s Annual Meeting, August 6-10, Denver, Colorado.
  64. Wallace, R. S. O. (1988) “Corporate financial reporting in Nigeria,” Accounting and Business Research, Vol. 18, No. 72, pp. 352-362.
  65. Wallace, R. S. O., K. Naser, and A. Mora (1994) “The relationship between the comprehensiveness of corporate annual reports and firm characteristics in Spain,” Accounting and Business Research, Vol. 25, No. 97, pp. 41- 53.
  66. Wallace, R. S. O., and K. Naser (1995) “Firm specific determinants of the comprehensiveness of mandatory disclosure in the corporate annual reports of
  67. Wang, K., O. Sewon, and M. C. Claiborne (2008) “Determinants and consequences of voluntary disclosure in an emerging market: evidence from China,” Journal of International Accounting, Auditing and Taxation, Vol. 17, No. 1, pp. 14-30.
  68. Watson, W. E., L. Johnson, and G. D. Zgourides (2002) “The influence of ethnic diversity on leadership, group process, and performance: an examination of learning teams,” International Journal of Intercultural Relations, Vol. 26, No. 1, pp. 1-16.
  69. Watts, R. L., and J. L. Zimmerman (1978) “Towards a positive theory of the determination of accounting standards,” The Accounting Review, Vol. 53, No. 1, pp. 112-134.
  70. Wijantini, W. (2006) “Voluntary disclosure in the annual reports of financially distressed companies in Indonesia,” Gadjah Mada International Journal of Business, Vol. 8, No. 3, pp. 343–365.
  71. Xiao, H., and J. Yuan (2007) “Ownership structure, board composition and corporate voluntary disclosure: evidence from listed companies in China,” Managerial Auditing Journal, Vol. 22, No. 6, pp. 604-619.
  72. Yuen, C. Y., M. Liu, X. Zhang, C. Lu (2009) “A case study of voluntary disclosure by Chinese enterprises,” Asian Journal of Finance and Accounting, Vol. 1, No. 2, pp. 118-145.
  73. Yusoff, N. H., and M. M. Hanefaf (1995) “Malaysian institutional investors’ annual reports information needs,” Malaysian Management Journal, Vol. 1, No. 2, pp. 41-49.

Cite this Article: