The factors impact on the quality of accounting information a survey in ha noi listed companies Các yếu tố ảnh hưởng đến chất lượng thông tin kế toán khảo sát tại các công ty niêm yết tại Hà Nội
INTRODUCTION
Background and necessity of the research
1.1.1 Accounting information and its importance
Accounting information serves as a vital tool for both internal and external users in their decision-making processes, making the quality of information in financial statements crucial for effective decision-making Information quality is defined as the degree to which it meets or exceeds the expectations of its users (Khalil et al., 1999; Rapina, 2014) High-quality accounting information possesses valuable characteristics that aid administrators in managing enterprises and assist investors in making informed business decisions (Azhar Susanto, 2008) Furthermore, Goitom (2003) highlights that superior accounting information quality significantly enhances the likelihood of business success, as accounting functions as a critical system for measuring and communicating information essential for both macro and microeconomic activities.
Effective decision-making in organizations relies on relevant information, which reduces uncertainty and enhances knowledge, as highlighted by Gelinas, Dull (2008), and Wheeler (2011) Quality information fosters a deeper understanding among managers, enabling them to recognize and respond swiftly to internal and external changes (Azhar Susanto, 2012) However, decision-makers often encounter an overload of irrelevant information, potentially overlooking critical issues (Stoner, Freeman, and Gilbert, 1995).
Poor information quality can significantly hinder the decision-making process, leading managers to make erroneous choices that negatively impact a company's profitability and performance Beyond mere information exchange, accounting information plays a crucial role in organizational communication by highlighting areas requiring further scrutiny Research by Ahrens and Chapman (2007) demonstrates how accounting data can identify underperforming areas and stimulate discussions among managers about potential actions and solutions Thus, effective accounting information is essential for informed decision-making and organizational success.
To enhance organizational efficiency, managers must streamline various activities, allowing them to grasp the significance of daily management tasks (McKinnon & Bruns, 1992; Preston, 1986) They leverage information to cultivate a broader understanding of their work environment, drawing on past experiences and existing knowledge to inform their decisions and actions (Dane & Pratt, 2007) Ultimately, improving the quality of accounting information is crucial for boosting creditor confidence in the disclosed data of publicly listed companies and minimizing agency costs.
1.1.2 The impact of accounting information on financial statement
The preparation of financial statements is crucial to conduct the operations of the business
The article highlights that assessing a company's economic and financial performance extends beyond mere summarization; it also involves evaluating the quality of its relationships with public authorities, particularly regarding profit distribution (Gapsalamov et al., 2017; Bittman et al., 2017) Michelon (2011) notes that firms with strong financial performance tend to disclose more information, enhancing their operational legitimacy to stakeholders through financial statements and annual reports, which in turn reinforces their reputation Consequently, companies with a solid reputation are less inclined to face scrutiny.
Falsifying financial statements can lead to significant reputational damage due to media scrutiny and public perception of the quality of information provided The usefulness of financial statements is essential for users, particularly in making investment, credit, and related decisions, as their focus often revolves around valuation issues Consequently, the quality of accounting information disclosed in financial statements is crucial, as it directly influences the decision-making efficiency of users.
1.1.3 The necessity of the research
Listed companies must ensure high-quality accounting information in their financial statements due to the diverse and complex nature of their stakeholders With a large and fluctuating number of shareholders, accurately monitoring equity transactions and profit distribution becomes challenging Additionally, specific financial metrics such as share premium, treasury shares, and basic earnings per share must be clearly presented, along with changes in equity noted in the financial statements Moreover, the disclosure requirements for these financial statements are more stringent compared to those for ordinary enterprises.
Many enterprises often present "beautified" financial statements that do not reflect their true financial condition This manipulation can serve various purposes, such as attracting investors through bond and stock issuance or demonstrating financial stability to partners and customers However, when economic conditions shift, these companies may struggle or even face bankruptcy Notable examples include the Enron scandal in 2001, which wiped out over $60 billion in market value due to misleading financial reporting that confused investors and analysts Similarly, Toshiba faced significant repercussions in 2016 due to its own financial misrepresentation.
13 bankrupt, through investigation, it was found that this company took advantage of commercial advantages to overstate revenue and profit for many years, even lasting up to
Over the past 20 years, financial scandals in Vietnam, such as the Truong Thanh Wood Joint Stock Company incident in 2016, where over 1,000 billion VND in inventory vanished from financial statements, have severely impacted investor confidence and market transparency Similar issues have been identified in other listed companies, resulting in plummeting stock prices and significant investor losses Another notable case is Bibica Company, which in 2002 concealed a 12.5 billion VND loss by misclassifying construction costs These examples highlight how poor information quality not only jeopardizes businesses and investors but also poses risks to the entire economy According to Faride Noori (2014), inadequate accounting information can adversely affect decision-making processes, leading managers to make misguided decisions that negatively impact company profitability and overall performance.
Based on the above implementation, the research about the quality of Accounting Information has been carried out by many previous researchers Pham (2016) and Nguyen
In 2013, research highlighted various internal factors affecting accounting information quality, such as the organization of accounting work and tax impacts, while Nelsi Wisna identified external influences like information technology and organizational culture Contrarily, Bani Ahmad's findings suggested that managerial influence does not significantly affect accounting information quality However, Matthew Hall's study underscored the importance of managers as key factors in the success of accounting information systems Additionally, Awosejo's research indicated that quality accounting information enhances administrative and management skills, facilitating smoother operations within companies Thus, understanding and further exploring the elements that influence accounting information quality is essential.
`1.2 Research gap and research questions
This study aims to identify the factors influencing the quality of accounting information in listed companies in Hanoi Listed companies, which are public entities whose shares are traded on the stock exchange, are subject to strict state management, representing a significant milestone in enterprise development However, in Vietnam, the transparency of information disclosure among these companies remains low, with limited and unreliable information published This lack of transparency has led to a reluctance among economic actors to utilize financial statements and audit reports effectively Despite improvements in business processes, challenges persist in ensuring the quality of accounting information.
Research indicates that accounting information is often incomplete, unofficial, or inconsistent, leading to an undervaluation of its role in decision-making Most financial statements primarily serve the needs of bank loans and tax obligations rather than providing valuable insights for management decisions (Nguyen Bich Ngoc, 2018) Consequently, enhancing the quality of accounting information is crucial for organizational effectiveness Although numerous studies have explored the factors influencing accounting information quality, their findings are inconsistent, with some studies yielding conflicting results.
Limited research has been conducted on the quality of accounting information in listed companies in Hanoi, a developing city with a significant number of such firms This gap highlights the need for further investigation into the factors that impact the quality of accounting information in financial statements To address this issue, our study aims to contribute to existing literature by developing and validating a questionnaire designed to measure the factors influencing accounting information quality in listed companies in Hanoi.
“What are the factors impacts on the quality of accounting information at listed company in Hanoi?”
Research objective
This study aims to examine the quality of accounting information in financial statements and identify key factors influencing this quality in listed companies in Hanoi Additionally, the research offers recommendations to enhance the quality of accounting information within these firms.
Research scope
Research data was collected from over 200 listed companies in Hanoi with the time range from 1/11/2021 to 10/12/2021.
Research outline
This thesis is divided into six chapters, as presented as follow:
In the introduction, the author mentions some important concepts covered in the study and introduces briefly about the research, the necessity of it, research objectives, research questions and scope
In this section, the author summarizes previous studies on the quality of accounting information in financial statements, thereby finding the four most influential factors for analysis
This chapter will provide explanation on research model and the hypotheses used in this research
The research methodology outlines the data collection and analysis processes, drawing on established literature A total of 155 employees participated in the survey, and the collected data was analyzed using the SPSS program.
Section 5: Data presentation and findings
This chapter presents a detailed description of the data collected and analyzes the results using SPSS software, version 20 It will also test the proposed hypothesis, allowing us to examine the relationship between the quality of accounting information and the hypothesis under consideration.
This chapter will answer the research questions, discuss research findings as well as giving some suggestions or any solutions to the found results, limitations and further research direction
LITERATURE REVIEW
Domestic research relating to accounting information
A study by Nguyen Thi Minh Thuy (2016) investigates the internal factors influencing the quality of accounting information in financial statements, identifying seven key elements: management, taxes, accounting systems, accounting organization, accounting books, financial reporting objectives, and accounting vouchers The findings indicate that while none of these factors significantly affect financial statement quality, taxes and management have the most substantial influence Tax compliance is crucial for accurate accounting information, while managers, though not directly involved in accounting processes, play a vital role in reviewing and validating financial statements, thus minimizing errors Additionally, the research highlights that small and medium-sized enterprises in Binh Duong province lack focused investment in enhancing the quality of their accounting information in financial statements.
A study by Le Hoang Van Trang et al (2020) identified six key factors influencing financial reporting: Manager, Taxes, Accounting Organization, Objectives of Financial Reporting, Accounting Vouchers, and Accounting Apparatus Notably, the study highlights that taxes and managers have a significant impact, with taxes emerging as a new influential factor Additionally, the importance of accounting vouchers is emphasized, as they serve as essential inputs in processing accounting information The accounting apparatus is also deemed a crucial element, responsible for directly recording and preparing financial statements These findings align with the results of Q T Pham's research.
(2016) and Abdullah et al (2015) that accounting apparatus is a factor impacts on the quality of accounting information
Both studies analyze the influence of internal factors on the quality of accounting information in enterprises, revealing that, despite differing survey areas, tax and managerial roles significantly impact the quality of financial statements.
Research by Ly Nguyen Ngoc Thao &Hoang Thi Nga (2020) on “factors affecting accounting information quality on financial statements at joint-stock commercial banks in
A study on Ho Chi Minh City identified five key factors influencing the quality of accounting information, ranked from most to least impactful: accounting process, information technology, qualifications of accountants, legal environment, and level of information disclosure The accounting process encompasses transaction handling, policy selection, and disclosures, all of which significantly affect the quality of financial statements Furthermore, advancements in accounting information technology enhance the conversion of manual data into computerized systems, while the use of accounting software facilitates the creation of higher-quality financial statements Interestingly, the findings suggest that the level of information disclosure does not significantly impact the quality of accounting information.
A study conducted by Nguyen Thi Thanh Tram (2020) reveals that information disclosure is the most significant factor affecting the quality of accounting information By disclosing information, companies enhance their credibility, which reduces the likelihood of financial statement falsification due to the potential reputational damage associated with poor-quality reporting Additionally, the qualifications of accountants emerge as the second most influential factor, while the legal environment and accounting processes also play a crucial role in determining the quality of accounting information.
A study by Nguyen Thanh Binh et al (2020) on the factors affecting the quality of accounting information in construction enterprises in Ho Chi Minh City identified key influences ranked from highest to lowest These factors include the qualifications of accountants, the quality of accounting data, the role of information technology, the knowledge of managers, the effectiveness of accounting software, and the level of support from management Notably, the internal control system showed no statistical influence on the quality of accounting information.
Bui Van Duong and Do Thi Hai Yen (2017) conducted a study on factors influencing the quality of accounting information in the consolidated financial statements of listed companies in Ho Chi Minh City Their findings revealed that all identified factors positively impact the quality of accounting information, ranked from highest to lowest influence: (1) preparation of financial statements, (2) legal environment, (3) management, (4) audit risk, (5) discrepancies between the accounting periods of parent and subsidiary companies, (6) internal control, and (7) accountants' qualifications A well-prepared financial statement equips business managers with essential information for timely and effective decision-making, crucial for business growth Additionally, the legal environment serves as a foundational element for accurate financial reporting, significantly affecting the quality of accounting information Lastly, managerial support is vital for the success of accounting information systems, guiding strategic goals and aligning development visions with business objectives.
Research indicates that while several factors influence accounting information quality, the outcomes vary significantly based on geographical location and the subjects surveyed Additionally, discrepancies exist among the factors identified across different studies.
Numerous studies have explored the factors influencing accounting information systems Research conducted by Doan Thi Chuyen et al (2020) examines the impact of information technology on the accounting processing workflow and assesses the quality of accounting information systems Their proposed research model identifies key factors that affect the efficiency of these systems.
The quality of an accounting information system (AIS) significantly enhances a company's ability to access comprehensive information essential for effective planning and control AIS provides high-quality information for both internal and external users, influenced by five key factors ranked from highest to lowest: (1) the qualifications of accountants, (2) the quality of data, and (3) internal control.
Management commitment and organizational culture positively influence the quality of accounting information systems (AIS) The qualification of accountants is identified as a crucial factor, as they play a key role in data entry and processing However, Vu Thi Thanh Binh (2020) presents contrasting findings, suggesting that the qualifications of accountants in small and medium-sized enterprises may not significantly impact AIS quality due to their limited capabilities in accounting and consulting services The study indicates that AIS quality is influenced by three main factors: the business environment, information technology, and managerial involvement Additionally, it highlights that a robust business environment increases the demand for quality information for planning and decision-making, while the integration of information technology significantly enhances both the quality of the AIS and the information produced.
Foreign research relating to accounting information
Azmi Fitriati (2020) examines the impact of organizational commitment and culture on the effectiveness of accounting information systems The study highlights that a strong organizational commitment and a positive organizational culture significantly contribute to enhancing the quality of accounting information, confirming the beneficial relationship between these factors.
A strong organizational commitment significantly enhances the success of accounting information systems (AIS) by fostering employee trust in the organization's objectives, leading to a positive perception of system implementation Furthermore, the alignment of organizational culture characteristics with employee values increases the perceived ease of use and usefulness of accounting systems Additionally, the findings indicate that AIS positively influences the quality of accounting information, contributing to overall success.
Ruhul Fitrios (2016) highlights that Accounting Information Systems (AIS) significantly impact the quality of accounting information, focusing on two key factors: managerial commitment and user training While top management's commitment does not significantly influence AIS implementation, user training proves to be crucial The study reveals that effective use of AIS enhances the characteristics of accounting information, ensuring the delivery of accurate and valuable data for informed decision-making and future policy development Furthermore, all users of accounting information recognize the essential role of AIS in improving information quality, which significantly affects the decisions of stakeholders such as creditors, financial analysts, and investors.
A study by Siti Kurnia Rahayu (2013) reveals that the accounting information system has a minimal impact on the quality of accounting information, primarily due to its inadequate application The findings indicate that while management commitment and data quality do influence accounting information systems, their effects are only partial and insignificant This limited influence is attributed to suboptimal management commitment and the quality of data input.
22 information systems Similarly, management commitment is only a small contribution because of non-optimum management support in determining the quality data in the information systems
In her 2013 study, Nelsi Wisna investigated the influence of information technology on accounting information systems in Indonesian enterprises The findings revealed that the use of information technology has a minimal effect on the quality of these systems and the resulting accounting information This limited impact is attributed to the ineffective implementation of technology within the accounting frameworks of these organizations, which fails to enhance the overall quality of the accounting information system The research indicates that while information technology is a contributing factor, it is not the sole determinant of quality; thus, identifying and addressing the most influential factors is crucial for improving both the quality of accounting information systems and the accuracy of accounting information.
Research indicates that the effectiveness of an accounting information system is often assessed through its impact; however, this approach has limitations It fails to comprehensively address critical aspects of quality, including the efficiency of the system's processing and the overall output quality of the accounting information produced.
In conclusion, various studies globally and nationally have explored different factors influencing the quality of accounting information in financial statements While these approaches are grounded in distinct theories, they are interconnected, revealing common evaluation criteria and influencing factors across disciplines This indicates a multidisciplinary trend in research concerning accounting information systems and their quality Furthermore, the review highlights the significant findings from these studies.
23 studies also used a variety of data analysis methods to strengthen the research results With different research contexts, the research results also have differences
Research has identified several key factors that significantly influence the quality of accounting information, including management commitment, the qualifications of accountants, and the effectiveness of information technology and accounting information systems These elements have been validated by previous studies, highlighting their critical role in enhancing accounting information quality.
HYPOTHESIS
Accountants and its influence on accounting information
Accountants play a crucial role in processing transactions and utilizing system information for daily operations Research by Allahverdi (2011) and Romney and Steinbart (2015) highlights the significance of the human factor within the accounting information system As users, designers, and controllers of these systems, accountants are responsible for collaborating with IT professionals to enhance accounting applications.
The qualification of accountants plays a crucial role in the quality of financial statements, as highlighted by Thuan (2016) If accounting staff do not meet the necessary qualifications, it can lead to a decline in the quality of financial reporting In addition to professional knowledge, experience, and a commitment to learning, proficiency in information technology is essential for accountants to enhance the financial reporting system and address growing demands (Pham, 2015) Consequently, skilled accounting personnel significantly contribute to the improvement of financial statement quality in enterprises Furthermore, Barney and Wright (1998) emphasize that human resources can provide a competitive advantage for organizations, with accountants being vital to the accounting information system through their involvement in data processing Recent studies, including those by Alshbiel and Al-Awaqleh (2011), confirm that human resources are integral to the success of accounting information systems.
The qualifications of accountants significantly influence the quality of financial reporting information Skilled personnel trained in accounting information systems are essential for the successful implementation of these systems, ultimately leading to enhanced overall accounting information quality, particularly in financial statements.
The qualifications of accountants significantly impact the quality of financial statements, as their expertise directly influences accounting practices within an organization If accounting staff fail to meet professional standards, the integrity of the entity's financial reporting can decline (Thuan, 2016; Pham, 2015) This study builds on prior research regarding factors affecting the quality of accounting information, leading to the formulation of the following hypothesis.
H2: The qualification of accountants has a positive impact on the quality of accounting information
Information technology and its influence on accounting information
Information technology encompasses a variety of computing systems utilized by organizations, including mainframe computers, minicomputers, microcomputers, software, databases, networks, the internet, intranet, and e-commerce technologies (Turban et al., 2008; Wilkinson, 2000) These components work together to collect, process, store, and deliver information essential for organizational decision-making (Bentley & Whitten, 2008) Key characteristics of information technology include functionality, ease of use, compatibility, and maintainability (Thompson & Baril, 2003) Ultimately, the primary purpose of information technology in business is to enhance the performance of information systems (O'Brien & Marakas, 2004).
The quality of accounting information system is influenced by information technology (Romney & Steinbart, 2009; Laudon & Laudon, 2012) and information technology is also
Information technology serves as a vital business tool that enables companies to efficiently find, save, and modify information (Bagranoff, 2010) According to O'Brien (1996), the primary reasons for utilizing information technology in business include supporting operational functions, aiding managerial decision-making, and fostering strategic competitive advantages Furthermore, the implementation of information technology enhances not only the quality and speed of information but also facilitates the creation of an accounting information system that improves integration among all parties involved (Azhar Susanto, 2010).
The integration of information technology significantly enhances the utility of accounting information in financial statements and supplementary reports, providing valuable insights for users within enterprises (Vo Van Nhi, 2013; Ly Ngoc Thao, 2020; Vu Thi Thanh Binh, 2020).
A study conducted in 2017 demonstrates that advancements in accounting information technology significantly enhance the transition from manual to computerized data processing, resulting in improved and more accessible financial statements Consequently, this research hypothesizes that various factors influence the quality of accounting information.
Accounting information system its influence on accounting information
An accounting information system (AIS) is a specialized subset of information systems designed to collect, process, and report financial information related to business activities Its primary purpose is to ensure accurate and efficient management of financial data, facilitating better decision-making and reporting.
An accounting information system (AIS) is defined as a structured set of data collection and processing procedures that generate essential information for users, as highlighted by Bagranoff (2010) According to Bodnar & Hopwood (2006), an AIS is also characterized as a computer-based system designed to convert accounting data into meaningful information Ultimately, the core purpose of an accounting information system is to facilitate the transformation of raw data into valuable insights for decision-making.
27 of components that collect, record, store, and process data to produce information for decision makers (Romney et al, 2009)
In today's competitive landscape, organizational growth and survival hinge on the effective implementation of information systems, underscoring the critical role of information for gaining a competitive edge (Bort, 1990).
Accounting information systems, as noted in 2003, generate real-time data that enables management to respond effectively This capability serves as a fundamental resource for fulfilling information requests during the decision-making process for users (Ponte and Pilar).
The adoption and implementation of accounting information systems (AIS) are crucial for effective control and strategic decision-making within companies Mia and Chenhall (2003) emphasize that many organizations fail to make informed decisions due to inadequate information management, particularly as they expand Furthermore, Ogah (2013) highlights that the quality of information produced by AIS is vital for management, as it supports various activities requiring reliable data Ultimately, the quality of information is directly tied to its ability to assist decision-makers in achieving their organizational goals.
Accounting information systems significantly enhance the quality of financial statements and the overall reliability of accounting information for various users, both internal and external to the enterprise (Sajady, 2008; Abdallah, 2013; Fitriati & Mulyani, 2015) The effectiveness of these systems is directly linked to the quality of the data inputted; misleading or irrelevant information can lead to equally flawed outputs (Sacer, 2006; Hubley, 2010) Consequently, if the data fed into the accounting information system lacks integrity, the resulting financial statements become meaningless (Hubley, 2010) Furthermore, a robust accounting information system contributes to the accuracy of financial reporting (Salehi, 2010).
Research indicates a significant relationship between accounting information systems and the quality of reported information (Sacer, 2006) Furthermore, these systems enhance the internal control mechanisms within organizations (Sajady, 2008) and play a crucial role in minimizing fraud and errors (Ngo Thi Thu Hang & Nguyen Thi Thuy Dung, 2013).
Numerous studies, including those by Abdallah (2013) and Fitriati & Mulyani (2015), highlight that accounting information systems significantly enhance the quality of financial statements and accounting information A robust accounting system, when utilized correctly, yields accurate and valuable information that facilitates efficient decision-making and supports future policy development These findings lead to the hypothesis regarding the positive impact of accounting information systems on the quality of accounting information.
H4: Accounting information systems have a positive impact on the quality of accounting information
Summary
Numerous studies worldwide have identified several key factors that influence the quality of accounting information in financial statements This research aims to focus on the significant factors highlighted in prior research and proposes several hypotheses based on these findings.
H1: Managers have a positive impact on the quality of accounting information
H2: The qualification of accountants has a positive impact on the quality of accounting information
H3: Information technology has a positive impact on the quality of accounting information H4: Accounting information systems have a positive impact on the quality of accounting information
Conceptual framework
Based on many previous research and the hypotheses of author, the conceptual framework of this study is illustrated as the following model:
RESEARCH METHOD
Data analysis method
This study utilizes SPSS 20 for data analysis, as it streamlines the process of analyzing and reporting collected data efficiently Additionally, the author reviews previous research related to the topic to identify factors influencing the quality of accounting information in financial statements of listed companies in Hanoi.
Research process
This study followed the procedure and steps as follows:
The detailed procedure is as follows:
Review the literature and previous research to define research topic
Identify research objectives, research scope, research model and methodology
Summary of previous research related to the research topic
Advise with supervisors for making the outline for research
Identify research population, sample and scale and measurements
Plan to do survey and develop questionnaire based on previous studies
Complete the questionnaire Collecting data
Run data on SPSS 20 Analyze and interpret data by SPSS
Conclusion, discuss research results and write reports
Step 1: Review previous literature and research for inspiration and identify research topics Then, summarize previous studies related to the quality of accounting information on financial statements and influencing factors as a basis for the research
Step 2: Outline the research paper with the support of a supervisor Identify research objectives, research scope, research model and methodology
Step 3: Based on previous studies to determine the factors affecting the quality of accounting information of enterprises, thereby finding the factors that have the strongest impact Through previous studies, four factors have been evaluated that have an impact on the quality of accounting information
Step 4: The questionnaire was prepared based on the scales of the original questionnaire
Then complete the questionnaire with supervisor's contribution Online questionnaire sent to interviewers via google doc file
Step 5: Collecting data and running data using SPSS 20 software Then analyze and interpret data by SPSS Finally, conclude, discuss the research results and write a report.
Sampling and data collection
The primary data for this research on factors affecting the quality of accounting information were collected through an online survey questionnaire, designed using Google Docs This questionnaire was developed based on previous theories and research to effectively measure various variables A total of 150 questionnaires were distributed online in Hanoi, and the process was efficient, allowing respondents to complete the survey in a short time This demonstrates that collecting primary data through online questionnaires is an effective method for researchers.
Based on the previous research method, sample size was made according to Hair et al
According to guidelines established in 1998, the recommended minimum sample size for research should be five times the total number of variables in a questionnaire, with exploratory factor analysis (EFA) ideally requiring at least 100 participants, though 50 is the absolute minimum Due to constraints in time and resources, this study will utilize these parameters to determine the appropriate sample size.
This research employs a quantitative approach, utilizing a total of 26 variables Based on the guideline of multiplying the number of variables by five, the recommended sample size is 130 However, due to constraints faced by respondents, the final sample size for distributing questionnaires was increased to 155.
This study employs convenience sampling, allowing the researcher to select accessible elements, which is particularly advantageous when time and budget constraints are present The survey focuses on listed companies in Hanoi, one of Vietnam's most economically advanced cities, and spans 12 different districts Due to the COVID-19 pandemic, data collection was conducted online using Google Docs to ensure safety and efficiency.
Designing questionnaire
This study involves the creation of questionnaires divided into two sections: one focusing on general information regarding the companies and their employees, and the other assessing the impact of various factors on accounting information as outlined in the literature review.
The first part asks for some general information about the companies and the employees in such as gender, age, so on
The second part is designed with multi-item to measure each variable The measures of this research are obtained and modified based on similar ones from previous studies
Table 1: Measuring items for survey
Managers Managers appreciate the importance of the quality of accounting information
Managers appreciate the provision of accounting information must be honest and reasonable
Managers can intervene in the preparation of financial statements of the accounting department
Managers can read and understand financial statements
The manager has a certain understanding of the accounting field
Managers make decisions based on the company's financial statements
Accountants are trained in necessary skills
Accountants have skills in preparing and presenting financial statements
Xu Honghiang (2003), Al- Ahyiari (2013), Rapina (2014)
Accountants regularly update on changes in accounting standards, regimes and relevant legal regulations
Accountants understand the business and financial situation of the company
Information technology improves the information processing of information systems
Information technology helps to change data processing from manual system to computer system
Information technology contributes to the company's goal setting
Information technology helps companies improve service efficiency
Information technology helps information systems perform their roles (support business operations, help managers make decisions)
The accounting information system has good security
The data in the accounting information system is entered clearly, completely and accurately
The data in the accounting information system is suitable for the information needs of the users
The accounting information system helps managers identify problems in the business The accounting information system is designed to suit the type of business
Financial analysis and forecasts are shown on the financial statements
Accounting policies (accounting standards, accounting regimes) of the enterprise are appropriate
Information on financial statements is reliable, completeness and easy to understand
This year's information can be compared with the previous year's information on the company's financial statements
It is possible to compare the information on the financial statements of the enterprise with the financial information of other organizations
Enterprises present financial statements to relevant agencies on time
In order to answer these above questionnaires, a five-point Likert scale is used It ranges from (1) “ strongly disagree” to (5) “ strongly agree”
Table 2: Likert scale of Agreement extent
Disagree Neutral Agree Strongly agree
Analyzing data plan
Table 3: Encoded terms for data testing
1 MA1 Managers appreciate the importance of the quality of accounting information
2 MA2 Managers appreciate the provision of accounting information must be honest and reasonable
3 MA3 Managers can intervene in the preparation of financial statements of the accounting department
4 MA4 Managers can read and understand financial statements
5 MA5 The manager has a certain understanding of the accounting field
6 MA6 Managers make decisions based on the company's financial statements
7 AC1 Accountants are trained in necessary skills
8 AC2 Accountants have skills in preparing and presenting financial statements
9 AC3 Accountants regularly update on changes in accounting standards, regimes and relevant legal regulations
10 AC4 Accountants understand the business and financial situation of the company Information technology
11 TE1 Information technology improves the information processing of information systems
12 TE2 Information technology helps to change data processing from manual system to computer system
13 TE3 Information technology contributes to the company's goal setting
14 TE4 Information technology helps companies improve service efficiency
15 TE5 Information technology helps information systems perform their roles (support business operations, help managers make decisions)
16 AS1 The accounting information system has good security
17 AS2 The data in the accounting information system is entered clearly, completely and accurately
18 AS3 The data in the accounting information system is suitable for the information needs of the users
19 AS4 The accounting information system helps managers identify problems in the business
20 AS5 The accounting information system is designed to suit the type of business
21 IQ1 Financial analysis and forecasts are shown on the financial statements
22 IQ2 Accounting policies (accounting standards, accounting regimes) of the enterprise are appropriate
23 IQ3 Information on financial statements is reliable, completeness and easy to understand
24 IQ4 This year's information can be compared with the previous year's information on the company's financial statements
25 IQ5 It is possible to compare the information on the financial statements of the enterprise with the financial information of other organizations
26 IQ6 Enterprises present financial statements to relevant agencies on time
The data was processed by software SPSS 20 for testing moderation effect The processing data method are presented as below:
4.5.1 Reliability analysis by Cronbach’s alpha
Cronbach's alpha is a key indicator of a test's internal consistency or reliability, with values ranging from 0 to 1 A higher alpha value signifies better reliability, with coefficients between 0.8 and 1 considered excellent, 0.7 to 0.8 deemed good, and above 0.6 classified as acceptable Conversely, an alpha value below 0.5 is regarded as unacceptable.
39 exceptions, if the Cronbach's Alpha coefficient ranges from 0.95 to 1, it indicates that many variables on the scale are overly similar, a phenomenon known as duplication or redundancy
Item-total correlation effectively illustrates the relationship between a specific variable and others on a unified scale An item is deemed unacceptable and will be removed if its item-total correlation falls below 0.3 Conversely, items with a correlation exceeding 0.3 are considered acceptable (Nunnally & Bernstein).
Exploratory factor analysis (EFA) is a quantitative method that simplifies a large number of variables into more manageable components while preserving the essence of the original data (Hair et al., 1998) When conducting EFA, it is essential to adhere to specific criteria to ensure accurate and meaningful results.
According to Hair et al (1998), the recommended sample size for conducting exploratory factor analysis (EFA) research is at least 50 participants, with a preference for 100 Additionally, it is advised that the minimum sample size should equal the total number of variables in the questionnaire multiplied by five.
Factor loading, according to Hair & ctg (1998), is an indicator to ensure the practical significance of EFA:
Factor loading > 0.3 is considered to be the minimum
Factor loading > 0.4 is considered important
Factor loading > 0.5 is considered to be of practical significance
The Kaiser-Meyer-Olkin (KMO) test assesses the sampling adequacy for factor analysis, with values ranging from 0.5 to 1 indicating suitability for analysis A KMO value below 0.5 suggests that factor analysis is not appropriate for the given dataset.
Bartlett's test evaluates the correlation matrix against the identity matrix to determine if there is redundancy among variables that can be effectively summarized by certain factors A significant result is indicated when the p-value of Bartlett's Test is less than 0.05.
Regression analysis involves statistical methods used to estimate the relationships between a dependent variable and one or more independent variables To conduct regression analysis effectively, it is essential to identify a regression function that illustrates the relationship between these variables, allowing for the observation of their influential impacts In this study, the specific regression function will be defined accordingly.
Y = Scores on the dependent variables - Accounting information quality
X1, X2, …, Xn = Scores on the independent variables of the research model (Managers, Accountants, Information technology and Accounting system )
b1, b2 ……, bn = Regression co-efficient of independent variables
The Correlations table presents two key values: Pearson Correlation and Sig (2-tailed) A Pearson Correlation value between 0.6 and 1 indicates a strong correlation, while a value from 0.4 to 0.6 signifies an average correlation Values ranging from 0.2 to 0.4 reflect a weak correlation, and values below 0.2 indicate no correlation Additionally, the Sig (2-tailed) value must be less than 0.05 to establish statistical significance.
DATA PRESENTATION AND FINDINGS
Data description
Among 250 copies of the survey were distributed, 165 questionnaires were received The received answered are screened to find out the invalid Among 165 questionnaires,
I received 150 valid answer papers and 15 invalid answer papers due to the same degree of incorrect answers to multiple questions or missing answers
Chart 1 Percentage of gender distribution mong 150 participants
The chart indicates that out of 150 participants, 79% are female while only 21% are male, highlighting a significant gender imbalance in the accounting profession This disproportionate representation of female employees underscores the ongoing challenges related to gender diversity in this field.
Chart 2 Percentage of ages distribution mong 150 participants
The pie chart illustrates the age distribution of survey participants, revealing that the majority are adults aged between 30 and 50 Specifically, those aged 30 to 40 constitute the largest segment at 38%, while individuals aged 41 to 50 make up 31% Conversely, participants over 50 years old represent the smallest group at just 12% This data indicates that the survey primarily captures the perspectives of adult respondents, particularly those employed as accountants.
Chart 3 Percentage of job position mong 150 participants
Under 30 From 30 to 40 From 41-50 Above 50
The chart depicts the job positions of survey participants, revealing that accounting staff constitute the largest group at 61%, followed by managers at 27% Chief accountants and other managerial roles account for 10% and 2%, respectively This indicates that the majority of respondents are accountants employed by listed companies in Hanoi.
Reliability analysis
Table 4: Reliability Statistics of MA
Administrators Accountant Chief accountant Manager
Table 5 : Item-Total Statistics of MA
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The Managers Scale, comprising six items (MA1, MA2, MA3, MA4, MA5, and MA6), demonstrates a strong reliability with a Cronbach's Alpha of 0.904, significantly exceeding the acceptable threshold of 0.6 The Corrected Item-Total Correlation for the items ranges from 0.700 to 0.768, all above the minimum requirement of 0.3 Additionally, the Cronbach’s Alpha if Item Deleted values for the six items are all lower than the overall alpha, indicating that each item contributes positively to the scale's reliability Therefore, it can be concluded that the Managers Scale is reliable, and all six items are deemed acceptable for further examination.
Finally, after conducting a reliability analysis, the Managers scale consists of six items: MA1, MA2, MA3, MA4, MA5, and MA6
Table 6: Reliability Statistics of AC
Cronbach's Alpha Based on Standardized
Table 7: Item-Total Statistics of AC
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The Accountants Scale, comprising four items (AC1, AC2, AC3, and AC4), demonstrates strong reliability with a Cronbach's Alpha of 0.808, exceeding the acceptable threshold of 0.6 Each item's Corrected Item-Total Correlation is above 0.3, with values of 0.738, 0.717, 0.755, and 0.335 While the Cronbach’s Alpha if Item Deleted for AC1, AC2, and AC3 is lower than 0.808, AC4 shows a higher value of 0.868 However, due to AC4's Corrected Item-Total Correlation being below 0.3, it will not be discarded Consequently, all four items of the AC scale are retained for further analysis In summary, the reliability analysis confirms that the AC scale includes all four items: AC1, AC2, AC3, and AC4.
Table 8: Reliability Statistics of TE
Table 9: Item-Total Statistics of TE
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The Information Technology (TE) scale comprises five items: TE1, TE2, TE3, TE4, and TE5 Analysis results in Table 9 reveal a Cronbach’s Alpha value of 0.863, indicating strong reliability, as it exceeds the acceptable threshold of 0.6 Additionally, the Corrected Item-Total Correlation for the five items is 0.704, 0.660, 0.665, 0.714, and 0.694, all of which are greater than the recommended value of 0.3, further confirming the scale's validity.
Item Deleted of five items respectively is 0.833, 0.842, 0.840, 0.827 and 0.832 are all less than 0.863 Therefore, these five items are accepted and will be analyzed in the next step
In conclusion, after making reliability analysis, Information technology scale remains 5 items: TE1, TE2, TE3, TE4 and TE5
Table 10: Reliability Statistics of AS
Cronbach's Alpha Based on Standardized
Table 11: Item-Total Statistics of AS
Scale Mean if Item Deleted
The accounting system scale comprises five items: AS1, AS2, AS3, AS4, and AS5 Analysis results in Table 11 reveal a Cronbach’s Alpha value of 0.771, exceeding the acceptable threshold of 0.6, indicating good internal consistency among the scale items.
The analysis of the five accounting system items (AS3, AS4, AS5) revealed Corrected Item-Total Correlations of 0.451, 0.576, 0.549, 0.607, and 0.529, all exceeding the acceptable threshold of 0.3 Additionally, the Cronbach’s Alpha if Item Deleted for these items were 0.759, 0.717, 0.727, 0.706, and 0.734, each below the critical value of 0.771 Consequently, these items are deemed reliable and will be included in further analysis In summary, the reliability analysis confirms that the accounting system scale consists of five items: AS1, AS2, AS3, AS4, and AS5.
Table 12: Reliability Statistics of IQ
Cronbach's Alpha Based on Standardized
Table 13: Item-Total Statistics of IQ
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
The Accounting Information Quality Scale consists of six items: IQ1, IQ2, IQ3, IQ4, IQ5, and IQ6 The reliability analysis indicated a Cronbach’s Alpha of 0.878, significantly exceeding the acceptable threshold of 0.6 Additionally, the Corrected Item-Total Correlation for all six items ranged from 0.636 to 0.771, all above the minimum requirement of 0.3 The Cronbach’s Alpha if Item Deleted for each item was lower than the overall alpha, confirming the scale's reliability Consequently, it is concluded that the Accounting Information Quality Scale is reliable, with all six items accepted for further analysis.
The analysis identified a total of 26 measurement items, with 20 items categorized as independent variables (MA, AC, TE, and AS) and 6 items classified as the dependent variable IQ These scales will undergo exploratory factor analysis (EFA) to further assess their validity and relationships.
Table 14: KMO and Bartlett's Test for independent variables
Kaiser-Meyer-Olkin Measure of Sampling
At the first time testing EFA, the KMO is equal to 0.842 (more than 0.5 and less than 1) and sig of Bartlett's Test is 0.000 less than 0.05, have been satisfied
AC3 811 MA3 809 MA5 798 AC1 795 MA1 792 MA4 776 MA2 730 MA6 726 AC2 721
The initial exploratory factor analysis identified four distinct groups of factors However, the factor loading value for AS6 did not align with any of these groups, leading to its removal from the Rotated Component Matrix table Consequently, a second analysis was conducted using the remaining items.
Table 16: KMO and Bartlett's Test for independent variables
Kaiser-Meyer-Olkin Measure of Sampling
The EFA test results show that KMO's value of 0.837 is greater than 0.5 and the sig is 0.000 less than 0.05 These numbers confirm the validity of data for exploratory factor analysis
AC3 821 MA3 805 AC1 803 MA5 801 MA1 800 MA4 778 AC2 722
The analysis presented in Table reveals that MA2 has a Factor Loading value of 0.178 and AS4 has a Factor Loading value of 0.054, both falling below the acceptable threshold of 0.5 Consequently, these variables were excluded from the Rotated Component Matrix table To preserve the integrity of the survey data, the elimination process will be conducted gradually, starting with MA2, followed by a third execution of the EFA test.
Table 18: Rotated Component Matrix Rotated Component Matrix a
AC3 827 AC1 818 MA3 814 MA5 803 MA1 796 MA4 775 AC2 733 MA6 709
Following the removal of the MA2 variable and a third execution of the EFA test, the rotation matrix results shifted This led to the categorization of factors with analogous meanings and concepts into four primary groups, indicating that the AS4 variable does not require removal.
Table 18 reveals four distinct components derived from the exploratory factor analysis The first component comprises eight items from both the Managers and Accountants scales, emphasizing the significance of the human factor The second component includes all five items from the Information Technology scale The third component consists of three items from the Accounting System scale The fourth component combines three items from the Accounting System scale with one item from the Accountants scale, highlighting the role of accountants in operating accounting information systems Overall, the analysis demonstrates a clear concentration of observations across the identified factors, while AS6 and MA2 were excluded from the dataset.
Result groups factors based on rotation matrix:
Group 1: This group is called F1 includes variables AC1, AC2, AC3, MA1, MA3, MA4, MA5, MA6
Group 2: This group is called F2 includes variables TE1, TE2, TE3, TE4, TE5
Group 3: This group is called F3 includes variables AS1, AS2, AS3
Group 4: This group is called F4 includes variables AS4, AS5, AC4.
Pearon analysis
Table 19: Pearson correlation statistic Correlations
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
The analysis reveals that F1, F2, F3, and F4 exhibit a significant correlation with F, as indicated by high Pearson correlation coefficients of 0.647, 0.428, 0.400, and 0.484, respectively, with all p-values being less than 0.05 In contrast, F1 and F2 show no correlation, reflected by a Pearson correlation of 0.122 and a significance level of 0.173, which exceeds 0.05 Similarly, F2 and F3 also lack correlation, with a Pearson correlation of 0.163, remaining below the 0.2 threshold.
The analysis reveals a positive linear relationship between the dependent variable F and four independent variables (F1, F2, F3, F4) The correlation among these components is generally strong, with Pearson values exceeding 0.3 However, the relationships between F1 and F2, as well as F2 and F3, exhibit weaker correlations, with Pearson values below 0.2.
Regression analysis
5.4.1 Assessing the Fit of Regression Models
From the table above, R square is 56.8% and Adjusted R Square is 55.6% are greater than 50%, so the model has been satisfied This also shows that this linear regression model fits
The independent variables account for 55.6% of the variation in the dependent variable, with a slightly higher explanation rate of 56.8% Additionally, the Durbin-Watson index is calculated at 1.393, which falls within the acceptable range when compared to the Durbin-Watson table at an alpha level of 1%, confirming that dU < d < 4 - dU.
The correlation coefficient is 1.679, indicating no significant correlation; however, the remaining variance is attributed to out-of-model variables and random error, as detailed in the appendix While the correlation is not high, the model remains acceptable.
Total 138.648 149 a Dependent Variable: F b Predictors: (Constant), F4, F2, F3, F1
The ANOVA table indicates that the hypothesis regarding the overall fit of the model is supported, as evidenced by an F value of 47.607 and a significance level of 0.000, which is less than 0.05 This result confirms that the R squared value for the population is not zero, demonstrating that the constructed linear regression model is appropriate for the population.
5.4.2 Testing the assumptions of the regression model
Assumptions about the index of variance VIF
After checking the multi-collinearity through situation Variance inflation factor (VIF) value, VIF value respectively is 1.366, 1.127, 1.240, and 1.520, there are no items greater than 2, so there is no multi-collinearity
The analysis reveals that component F4 has the lowest coefficient value of 0.078, with a significance level of 0.250, which exceeds the threshold of 0.05, leading to its removal from the model A second regression test was conducted after excluding variable F4, yielding new results for further evaluation.
Regression analysis summary (2rd time)
Squares df Mean Square F Sig
Total 138.648 149 a Dependent Variable: F b Predictors: (Constant), F3, F2, F1
The analysis reveals that the Adjusted R-square indicates that 55.5% of the variance in F can be explained by F1, F2, and F3 Additionally, the significance value being below 0.05 confirms the reliability of this variable in determining F Consequently, hypotheses H1, H2, H3, and H4 are supported, highlighting the relationships among accounting information quality.
** Correlation is significant at the 0.01 level (2-tailed)
The Spearman's analysis indicates a strong correlation between the dependent variable F and the independent variables F1, F2, and F3, as evidenced by the significance values of 0.100, 0.246, and 0.707, all of which exceed the threshold of 0.05.
Hypothesis tested results
The theoretical model was analyzed and refined to include one dependent variable and three independent variables, resulting in a total of 16 reliable variables after eliminating five that did not meet measurement criteria Specifically, group F4 was excluded, group F1 removed one variable (MA2), and variable AS6 was discarded for failing to align with any group factor.
Discussion
A regression model identifies four key factors influencing the quality of accounting information in the financial statements of listed companies in Hanoi These factors include managers and accountants, with a coefficient of β = 0.557, information technology at β = 0.343, and the accounting information system, which has a coefficient of β = 0.142.
The quality of accounting information in financial statements is significantly influenced by managers and accountants, with a coefficient of β = 0.557 While managers may not be directly involved in creating accounting information, their role in evaluating, reviewing, and approving financial statements is crucial for minimizing errors and ensuring accurate disclosures to external parties This finding aligns with the studies of P Pham (2016) and Q T Pham (2016) Additionally, accountants play a direct role in analyzing and providing information, further impacting the quality of accounting data These insights indicate that accounting personnel are vital in enhancing information processing and overall accounting operations, supporting the conclusions drawn by Chalu (2012).
Information technology plays a crucial role in enhancing the quality of accounting information in financial statements, with a significant influence factor of β = 0.343 The robust integration of information technology within accounting information systems leads to substantial improvements in both system functionality and information quality These findings align with the research conducted by Ismail and King (2007), which underscores the positive impact of technology on accounting practices.
The third most influential factor affecting the quality of accounting information in financial statements is the accounting information system, with a coefficient of β = 0.142 A robust accounting system, when utilized correctly, delivers significant, accurate, and valuable information that facilitates efficient decision-making and aids in future policy development This finding aligns with the results of Uwaoma and Jennifer (2016).
This study developed a theoretical model assessing the quality of accounting information in the financial statements of listed companies, focusing on key elements such as managers, accountants, information technology, and accounting information systems The findings validate previous research through four critical factors and offer recommendations aimed at enhancing the quality of accounting information in listed companies based in Hanoi.
This study primarily focuses on accountants and managers within the business, excluding external participants While theoretically significant, it does not encompass all listed companies in Hanoi and lacks analysis of additional factors due to time and cost limitations The Adjusted R Square value of 0.555 indicates that only 55.5% of the variation in economic information quality is attributed to the independent variables, leaving 44.5% influenced by other factors These limitations highlight opportunities for future research.