- Corporate Internet ReportiRng Practices: An Exploratory Study of Listed Companies in Vietnam Securities Market. - This objective is obtained through the use of survey analysis on the websites of 200 companies listed on Hochiminh securities exchange (HSX) and Hanoi securities exchange (HNX) as in 2016. - The analysis relied on the use of a checklist containing 52 items covering corporate internet reporting practices. - The mean score of all items of the Internet Reporting Index (IRI) was 39.67. - The results also point out the significant differences between HSX and HNX companies in terms of corporate internet reporting practices. - These findings clearly suggest that in Vietnam, internet reporting is an emerging issue and there is ample room for improvements in order to utilize the full potential of the internet and other information technologies in the context of the fourth industrial revolution.. - These shifts made researchers to anticipate a gradual disappearance of the traditional paper-based reporting (Marston, 2003. - Corporate Internet Reporting (CIR) is defined as the disclosure of corporate annual report related items on corporate websites (Ashbaugh et al., 1999. - It is worth noting that the use of the internet and other information technologies improves information dissemination, resulting on equal, timely and cost-efficient access to relevant information by investors (OECD, 2004). - Many studies investigate the use of internet in disclosing information on the corporate website (Trites, 1999. - Deller et al., 1999). - This paper examines corporate internet reporting by Vietnamese listed companies, which has rarely been done before. - The criteria were used to construct an Internet Reporting Index (IRI), which was used to assess the company websites. - First, it examines corporate reporting via the internet in the context of an emerging market. - Second, this study presents a tool that can be used to measure the level of reporting information on the internet. - The rest of the paper is organized as followed. - Section 3 presents a very brief review of the relevant literature. - Section 5 presents the discussions while the last section (Section 6) provides a summary of the main findings and some concluding remarks.. - Overview of Reporting Practices in Vietnam. - Vietnamese accounting standards have been harmonizing with the International Financial Reporting Standards (IFRS), and the regulatory agencies of the Vietnamese government have gradually established a comprehensive regulatory framework for corporate information disclosures in the Vietnamese securities market. - For nearly two decades of formation and development, Vietnam Securities Markets have strongly qualitatively and quantitatively developed and have become one of the effective capital channels of the economy. - After three-year-implementation, besides many positive aspects of the Securities Law which have been proved to partly contribute to the development of the market, there were some shortcomings which needed the adjustments for making it suitable to the rapid changing of the securities market. - 09/2010/TT-BTC did not cover all the contents of the Securities Law 62/2010/QH12, such as expanding the subjects of information disclosure, classifying the information disclosure of public companies based on the capital size and publicity of the company (instead of classifying into the listed and non-listed public companies). - Theoretical Background and Previous Studies Related to Internet Reporting 3.1. - Jensen and Meckling (1976) defined an agency relationship as a contract under which one or more persons engage another person to perform some services on their behalf which involves delegating some decision-making authority to the agent. - They assumed that if both parties to the relationship are utility maximizers, there is a good reason to believe that the agent will not always act in the best interests of the principal. - The principal can limit divergences from his interest by establishing appropriate incentives for the agent and by incurring monitoring costs designed to limit the aberrant activities of the agent. - and (3) the residual loss (the cost relating to the reduction in welfare experienced by the principal as a result of the divergence between the agent’s decisions and those decisions would maximize the welfare of the principal).. - In the context of the company, a major issue is the information asymmetry between managers and shareholders. - The agent, therefore, takes advantage of the lack of observability of his actions to engage in activities to enhance his personal goals (Barako, 2007). - On the other hand, shareholders who are outsiders have to bear the risk of losing their money due to a lack of information (Lokman, 2011).. - According to the signalling theory, one could expect that only high quality firms use the internet as a medium to publish accounting information. - Low quality firms might prefer restricting access accounting data to the more determined users. - Craven and Marston (1999) assert that the very use of the internet might itself be a signal of high quality. - Previous Studies Related to Internet Reporting. - Corporate internet reporting has received widespread acceptance all over the world because it provides certain distinctive advantages. - Corporate disclosure provided on the website includes financial statements, notes to the financial statements, financial highlights, auditors report, corporate governance information, corporate social responsibility reporting, human resource information, ownership structure and so on. - Deller et al., 1999 US, UK, and Germany). - This practice is expected to grow to the extent that corporate financial reporting in near future will move entirely from the current primarily print-based mode to using the internet as a primary information dissemination channel (Lymer et al., 1999. - In addition, the internet permits interactive information distribution in a way not possible via the printed format, and it provides instant access to accounting information from either static pages or real time corporate databases (Lymer et al., 1999. - ‘timeliness’ problem which is inherent in the periodic timeframes of traditional print media (FASB, 2000). - Furthermore, the internet increases the amount of corporate disclosure by facilitating virtually unlimited storage capacity that encourages the provision of press releases and additional information services (Craven &. - Deller et al., 1999).. - (2002) argue that one of the greatest advantages of internet reporting is the opportunity to download files for further analysis. - (2002) argued that, instead of the one-way provider-dominated reporting process, the internet provides the opportunity for interactive communication through various communication types, one-way, two-way, or multi-way. - However, recognizing the potentials and advantages of the internet for corporate reporting does not imply that it is flawless. - Concerns regarding the credibility and integrity of publishing share price sensitive information on the company’s website without proper monitoring system have been raised by many scholars (Debereceny &. - The issue regarding linking audited financial statements to unaudited websites has been viewed as the main disadvantage of using the internet in corporate disclosures (FASB, 2000). - Moreover, another flaw of using the internet in business disclosures is the possibility of publishing false and/or misleading information.. - In this regard the FASB noted that: “…the internet generates more opportunity for rumors and disinformation to be circulated. - Nevertheless, the importance of using the internet to expand the audience of corporate disclosure cannot be ignored. - To the end of 2017, there were 344 companies listed on HSX and 384 companies listed on HNX. - However, due to the time and capability limit, this study will be conducted on the sample of 250 industrial and manufacturing listed companies (150 on HNX and the remaining 100 on HSX). - The data will be collected from the 2016 annual reports of those companies publicly available on the company’s websites, on the websites of HSX and HNX for analysis. - The final list of companies in the sample includes 200 companies.. - Internet Reporting Index. - To identify what types of information disclosed on a company’s website, an Internet Reporting Index (IRI) of 52 items (Annex A) was developed.. - The disclosure ranges from 16.00 (minimum) to 83.00 (maximum) meaning that there is huge discrepancy in the disclosure of corporate. - The mean score and standard deviation of content score and presentation score are also shown in the table.. - For content reporting, most of the companies (73.5%) fall within the range of 0.00 to 40.00 score. - Highest 88 companies (44.0%) fall under the range of 21 to 40 scores, which shows poor concentration by the firms on their Internet reporting. - For overall reporting score, most of the companies (59.5%) are in the class of 0.00 to 40.00, indicating low level of internet reporting by Vietnamese listed firms.. - It is found that at the time of reporting their information on the website companies emphasize less on content disclosure (IRI 32.24) than presentation disclosure (IRI 47.10). - However, surprisingly enough, in content disclosure companies provided more attention on the CSR and Human Resource Information (42.28), then on Corporate and Strategic Information (41.23). - Accounting and Financial Information is on the third place (25.75) before Forward looking information (20. - On the other hand, in presentation reporting, the gap in respect of IRI is not too large. - The test results presented on Table 5 showed that significant differences do exist not only in the overall IRI score between HSX companies and HNX companies (F = 20.094, sig. - 0.05) but also in the specific IRI component’s score (except IRIP2 with sig. - Hence, it can be concluded that in terms of content reporting listed companies in HSX disclosed more information on their websites than listed companies in HNX. - However, in terms of presentation, we did not find significant differences in technological advantages and users supports on the websites between two groups of listed companies either in HSX or in HNX.. - Internet Reporting Index by HSX and HNX companies. - Within Groups 6.262 198. - Within Groups 5.711 198. - Within Groups 9.730 198. - The objective of the study is to investigate the content and presentation of CIR practices among public listed companies in Vietnam. - The study was based on the analysis of websites of 200 listed companies in Vietnam securities market. - The results clearly suggest that in Vietnam, internet reporting is an emerging issue and there is ample room for improvements. - in order to utilize the full potential of the internet. - As more and more people in Vietnam are connecting themselves to the internet to get information, companies are expected to change their internet reporting practices, in terms of content and disclosure. - To the extent that more extensive use of the internet for information disclosure can improve the efficiency of the corporate disclosure regime, it is expected that more companies will improve their internet reporting practices and will use the internet as an alternative channel to distribute information faster and less costly.. - Therefore, generalizations of the findings should be made with caution. - Since companies’ websites are regularly updated and upgraded, the results of this study represent only a snapshot of corporate internet reporting practices of Vietnamese listed companies. - Therefore, a second- round rating for the same corporate websites in the future would enable to have comparable data and findings.. - Corporate Reporting on the Internet. - Financial Reporting on the Internet. - Financial Reporting on the Internet by Leading UK Companies. - A Survey on the Use of the Internet for Investor Relations in the USA, the UK and Germany. - Theory of the firm: Managerial behavior, agency costs and ownership structure. - Internet Reporting: Current Trends and Trends by 2010. - Business Reporting on the Internet. - Financial Reporting on the Internet by Leading Japanese Companies. - Principles of Corporate Governance (Paris).. - Immediate Trends in Internet Reporting.. - List of Internet Reporting Index of Listed Firms in Vietnam (52 items). - 2 Discussion on the impact of strategy on current results 3 Discussion on the impact of strategy on future results 4 Discussion of research and development activities 5 Statements of strategy improving business. - 9 Discussion on the effects of inflation rates on current results 10 Discussion on the effects of foreign currency on current results 11 Discussion on the effects of interest rates on current results 12 Breakdown and analysis of sales and revenues. - 5 Discussion on future expenditure. - 6 Discussion on the effects of interest rates on future operating activities 7 Discussion on the effects of inflation on future operating activities. - 8 Discussion on the effects of foreign currency on future operating activities Corporate Social Responsibility and Human Resource Information (9 items). - 9 Discussion on the safety of the products Presentation Format Material Process-ability format (5 items)
Xem thử không khả dụng, vui lòng xem tại trang nguồn hoặc xem
Tóm tắt