Factors Affecting the Timeliness of Financial Statements: Empirical Research in Vietnam
Factors Affecting the Timeliness of Financial Statements: Empirical Research in Vietnam

Author(s): Hung Tang Tri, Phuong Thi Kim Tran, Ngan Le Vu Thanh
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Timeliness of financial statements; audit report lag; financial information quality
Summary/Abstract: Purpose: The timeliness of financial statements is a critical characteristic and a necessarycomponent of relevant financial information that is receiving augmented attention byaccounting standard setters and regulatory authorities worldwide. Thus, this research aims tovalidate what factors affecting the timeliness of financial statements of Vietnamese listedbuilding material companies. Henceforward, it will significantly contribute to the quality offinancial statements particularly and the development of Vietnamese capital market generally. Design/methodology/approach: The data is collected from annual financial statements of 66building material companies listed on Viet Nam Stock Exchange (including HOSE and HNX)from 2013 to 2017. Then, research data is handled and analyzed by a multiple regression withOLS, FEM and REM model to descript the reliability and validity of research result. Findings: The result reveals that some factors such as board independence; board experience;and profitability have positive relationship with timeliness of financial statements, whereas thetype of financial statements; the duality of CEO; the foreign ownership and the leverage havenegative relationship with timeliness of financial statements. Furthermore, the findingsillustrate that there were no relationships between board size; board diligence; company sizeand the audit report lag. Research/practical implications: The paper identifies factors having the relationship with thetimeliness of financial statements of building material companies listed in Vietnam. From then,these companies’ managers and investors can consider these issues before making relevantdecisions. Further, the consecutive board of Viet Nam Stock Exchange also focuses on thispaper to enhance transparency of capital market as well as researchers can refer to it for theirstudies. Originality/value: This research broadens the knowledge on financial information quality, thetimeliness of financial statements particularly in Vietnamese capital market. Thence, the qualityof financial statements is augmented and investors as well as users will get benefits from it.

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