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Corporate communication for Vietnamese listed firms

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  • Kelly Anh Vu
  • Greg Tower
  • Glennda Scully

Abstract

Purpose - The purpose of this paper is to investigate the impact of independent directors and ownership structure on voluntary disclosures of Vietnamese listed firms. Design/methodology/approach - Year‐ending 2008 annual report disclosures of 45 Vietnamese listed firms are analyzed. Voluntary disclosure is measured using a Vietnamese Disclosure Index adapted from prior literature. Descriptive and inferential statistics (T‐test, analysis of variance, multiple regressions (ordinary least squares)) are employed to generate empirical insights. Findings - The results indicate that the level of voluntary disclosure among Vietnamese listed firms is relatively low (24.23 per cent). There are higher levels of disclosure relating to director and senior management details but far lower in regards to social issues. State ownership and managerial ownership are negatively and positively related to the extent of voluntary disclosure respectively. Moreover, bigger firms are found to be positively associated with voluntary disclosure. Research limitations/implications - The results of this study are limited to one year – 2008 – and thus, could be biased as disclosures can change over time. Practical implications - Vietnamese regulators should focus on strengthening the regulations governing the level of corporate communication in firms with high state ownership as well as encouraging more disclosure of non‐financial information to strengthen its market information transparency. Originality/value - This study is one of the first examining the level of corporate voluntary disclosure practices among Vietnamese listed firms. Evidence from this study extends the existing voluntary disclosure literature on emerging economies whilst providing valuable insights to Vietnamese policy makers in the process of developing and improving its financial reporting regulatory framework.

Suggested Citation

  • Kelly Anh Vu & Greg Tower & Glennda Scully, 2011. "Corporate communication for Vietnamese listed firms," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(2), pages 125-146, July.
    • Handle: RePEc:eme:arapps:v:19:y:2011:i:2:p:125-146
    DOI: 10.1108/13217341111181069
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    2. Phan, Duc Hong Thi & Mascitelli, Bruno, 2014. "Optimal approach and timeline for IFRS adoption in Vietnam: Perceptions from accounting professionals," Research in Accounting Regulation, Elsevier, vol. 26(2), pages 222-229.
    3. Hanh Thi My Le & Qian Long Kweh & Irene Wei Kiong Ting & Mohammad Nourani, 2022. "CEO power and earnings management: Dual roles of foreign shareholders in Vietnamese listed companies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1240-1256, January.
    4. Samya Tahir & Mian Sajid Nazir & Muhammad Ali Jibran Qamar & M. Martin Boyer, 2022. "Ineffective implementation of corporate governance? A call for greater transparency to reduce agency cost," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1528-1547, July.
    5. Sharma, Narendra, 2014. "Extent of corporate governance disclosure by banks and finance companies listed on Nepal Stock Exchange," Advances in accounting, Elsevier, vol. 30(2), pages 425-439.

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