RESEARCH ON THE FACTORS AFFECTING ON THE LEVEL OF INFORMATION DISCLOSURE IN ANNUAL REPORT OF VIETNAMESE COMMERCIAL BANKS

RESEARCH ON THE FACTORS AFFECTING ON THE LEVEL OF INFORMATION DISCLOSURE IN ANNUAL REPORT OF VIETNAMESE COMMERCIAL BANKS NGUYỄN NGỌC THUY Major: Accounting Code: 62.34.30.01 SUMMARY

RESEARCH ON THE FACTORS AFFECTING

ON THE LEVEL OF INFORMATION DISCLOSURE

IN ANNUAL REPORT OF

VIETNAMESE COMMERCIAL BANKS

NGUYỄN NGỌC THUY Major: Accounting Code: 62.34.30.01

SUMMARY OF DOCTORAL DISSERTATION

Da Nang, 2025

UNIVERSITY OF ECONOMICS

RESEARCH ON THE FACTORS AFFECTING

ON THE LEVEL OF INFORMATION DISCLOSURE

IN ANNUAL REPORT OF

VIETNAMESE COMMERCIAL BANKS

NGUYỄN NGỌC THUY Major: Accounting Code: 62.34.30.01

SUMMARY OF DOCTORAL DISSERTATION

Da Nang, 2025

INTRODUCTION

1 Rationale

The issue of information disclosure and transparency of business activities plays an important role for organizations and individuals in the market economy Transparency of information helps business units healthy operations, limits information asymmetry, helps investors and customers trust the business's operations, thereby reducing costs information costs for parties related to the business's operations Many studies around the world have been carried out to evaluate the influence of factors affecting the level

of information disclosure of commercial banks in many countries around the world However, studies in the world have not yet reached consensus on the factors affecting the level of information disclosure in the annual report

In Vietnam, a few studies have been conducted to investigate the disclosure

of commercial banks, but only to find out the information disclosed in the financial statements for a few Vietnamese commercial banks and practice Currently studying with data for 1 to 2 financial years Therefore, it is really necessary to have a more comprehensive study on the level of information disclosure and the factors affecting the information disclosure of Vietnamese commercial banks as a basis for proper assessment roles and obligations of providing and transparent information of commercial banks

to investors and parties related to the operation of banks With that important

meaning, the author has chosen the topic "Research on factors affecting the

level of information disclosure in annual reports of Vietnamese commercial banks"

2 Aims of Study

The thesis studies the factors affecting the level of information disclosure in the annual reports of commercial banks in Vietnam

3 Research questions

- What is the level of information disclosure of Vietnamese commercial banks and how has it fluctuated in recent years from 2014

to 2019?

- What factors affect the level of information disclosure? on the annual reports of Vietnamese commercial banks?

4 Subjects of Study

Thesis studies the factors affecting the level of information disclosure in the annual reports of Vietnamese commercial banks The scope of the study focuses on Vietnamese commercial banks that have published their annual reports from 2014 to 2019

5 Scope of Study

The scope of the study is Vietnamese commercial banks that have published their annual reports publicly on means of communication in the period 2014-2019

6 Methodology

The thesis mainly uses descriptive statistics to measure the level of information disclosure and linear regression method to determine factors affecting information disclosure of Vietnamese commercial banks

7 Contributions of the Study

The topic synthesizes and inherits existing research works in the world and in Vietnam to serve as a scientific basis for the research topic

of building and designing a research model on the factors affecting the level of disclose information in accordance with the characteristics of the Vietnamese commercial banking system

The thesis has conducted an objective and complete measurement and assessment of the level of information disclosure in the annual reports of Vietnamese commercial banks in the period 2014-2019 The thesis also contributes an important part in terms of practice through the results of analysis and discovery of factors affecting the information disclosure situation in the annual reports of Vietnamese commercial banks so that provide implications and solutions to improve information disclosure for banks

8 Study’s structure

The content of the thesis is presented in 5 chapters with the following structure:

Chapter 1: Theoretical framework, regulations and literature review

Chapter 2: Research Framework

Chapter 3: Research findings

Chapter 4: Conclusion and recommendations

CHAPTER 1 THEORETICAL FRAMEWORK,

REGULATION AND LITERATURE REVIEW

1.1 Overview of information and regulations on information disclosure in the annual report

1.2 Fundamental theories on information disclosure and factors affecting information disclosure

Commonly used disclosure theories include:

+ Theory of Legitimacy

+ Theory of Agency

+ Theory of signaling

1 3 Overview of Disclosure Studies

Studies on information disclosure in annual reports of commercial banks in the world and in Vietnam are usually conducted

in the following order: (1) building a list of disclosures to measure the level of information disclosure; (2) determine the factors affecting the level of information disclosure by the method of testing the linear regression model, which is built based on the hypotheses made about the relationship between the factors and the level of publicity information disclosure The factors built include: bank size, profitability, debt ratio, board composition, audit subject, fixed asset ratio , stock market listing status, age of the bank, share structure, independent audit and other factors

1.4 Overview of information disclosure research in Vietnam

Research on information disclosure conducted in Vietnam is inherited from studies abroad Research on information disclosure of the banking system in Vietnam has not received due attention, but most of the research focuses on non-financial enterprises listed on the stock market in general and on some specific business lines The monetary business activities of banks have distinct characteristics compared to other business lines Most previous studies, when conducted for all types of enterprises, did not include banks and financial companies in the research sample because the reporting system of banks is different from that of other enterprises Therefore, research on information disclosure of banks is often conducted independently of other enterprises

1 5 Evaluate studies and find research gaps

Studies on disclosure of commercial banks in foreign countries have discovered factors that affect the level of information disclosure in annual reports These findings will be an important reference source as a basis for empirical research for the thesis topic The process of understanding the research on the factors affecting the level of information disclosure of commercial banks has not yet reached a consensus on the research results Research on information disclosure of the commercial banking system in Vietnam has not been fully and comprehensively done because data is only collected in a short research period, so the conclusions can only be appropriate During the research period, the effects of changes in policy or business environment have not been excluded and cannot represent the overall operation of Vietnamese commercial banks

The thesis will inherit the research results on the factors affecting the information disclosure of foreign and domestic commercial banks and the suggestions of experts to build hypotheses about the factors affecting the information disclosure to the disclosure

of information in the annual report of a Vietnamese commercial bank, using statistical techniques to determine the factors that have an impact

on the disclosure of information of commercial banks

CHAPTER 2 METHODOLOGY

2.1 Research framework and research process

2.2 Research hypotheses

Hypothesis H1: “Older banks will disclose more information than younger banks.”

Hypothesis H2: “Large banks will disclose more information than smaller banks.”

Hypothesis H3: “Banks with high liquidity ratios will disclose more information than banks with lower liquidity ratios”

Literature

Review on Past

Study

Fundamental

theories of

information

disclosure

Study framework: variable, hyphothesis, methodology

Subjects

of the Study

Determine the factors affecting on information disclosure in annual reports of Vietnamese commercial

banks

Regulation on

Information

Disclosure

Hypothesis H4: “Banks with high ROA will disclose more information than banks with lower ROA”

Hypothesis H5: “Banks with low debt ratios will disclose more information than banks with higher debt ratios.”

Hypothesis H6: “Banks whose financial statements are audited by auditing firms in the Big 4 group will disclose more information than those whose financial statements are audited by auditing firms outside the group Big4”

Hypothesis H7: “Banks with high fixed asset value will disclose more information than banks with low fixed asset value”

Hypothesis H8: “Banks whose shares are listed on the stock market will disclose more information than those whose shares are not listed

on the stock market”

Hypothesis H9: “Banks with a high percentage of foreign investors will disclose more information than banks with 100% domestic investment”

2.3 Research model and measurement of variables in the research model

Mức độ công bố thông tin

Tuổi của ngân hàng Quy mô ngân

hàng

Tỷ lệ thanh khoản

Khả năng sinh lời

Tỷ lệ nợ

Chủ thể kiểm toán

Tài sản

cố định

Thị trường

chứng

khoán

Tỷ lệ vốn nước ngoài

The disclosure index of each bank's annual report is calculated

by the formula:

𝐶𝐵𝑇𝑇 = ∑!"#$𝑑𝑖

𝑛 𝑥 100

In which, CBTTj is the information disclosure index; di=1 if information is published, otherwise di = 0; n is the amount of information disclosed by the company (n 63 ) Regression model to study the factors affecting the level of information disclosure in annual reports of commercial banks in Vietnam is proposed as:

CBTT = β 0 + β 1 TUOI + β 2 TTSA + β 3 TLTK + β 4 ROA + β 5

TLNO + β 6 BIG4 +β 7TSCD + β 8 TTCK++ β9CPNG + є The study used SPSS22.0 software to analyze data and OLS regression model to test research hypotheses, use Spearman correlation analysis technique to test the relationship between research variables to determine determining factors affecting the level of disclosure on annual reports of Vietnamese commercial banks

2.4 Research sample and data collection

The research sample includes 135 annual reports of 2 7 commercial banks that fully publish their annual reports for the 6-year period from 2014 to 2019

CHAPTER 3 RESEARCH FINDINGS

3.1 The level of information disclosure in annual reports of Vietnamese commercial banks

DISTRIBUTION RATE OF DISCLOSURE ON THE ANNUAL

REPORT OF VIETNAM'S COMMERCIAL BANKS

The average value 59.7% 61.4% 61.7% 60.7% 62.4% 66.7% Standard

deviation 17.4% 16.6% 17.8% 17.7% 16.6% 16.3% Median 55.6% 57.1% 60.3% 57.1% 57.1% 65.1%

3 2 Research results on factors affecting the level of information disclosure

STATISTICS OF INDEPENDENT VARIABLES

N Minimum Maximum Mean Deviation Std

CBTT 162 30,16% 98,41% 62,10% 16,96%

TTSA 162 15,00 1.313,00 250,82 307,28

TLNO 162 76,16% 96,74% 91,63% 3,41%

CORRELION ANALYSIS OF SPEARMAN

CBTT 1,000

TUOI 338 1,000

.000

.000 000

TLTK -.133 -.198 -.379 1,000

.046 006 000

ROA 201 083 154 061 1,000

.005 147 025 221

.007 000 000 000 066

.000 404 000 433 075 087

.150 001 059 121 022 003 032

.000 000 000 045 000 003 278 000

.000 002 000 061 170 181 000 171 000

DESCRIPTION STATISTICS WITH SKEWNESS AND

KURTOSIS TEST

Deviation

Skewness Kurtosis

CBTT 30,16% 98,41% 62,10% 16,96% 0,448 -0,819

TTSA 15,00 1.313,00 250,83 307,28 1,925 2,859

TLNO 76,16% 96,74% 91,62% 34,09% -1,745 4,313

TSCD 00,07% 06,02% 1,42% 0,25% 1,661 2,634

SHAPIRO-WILK TEST

Uhat 162 0,98994 1,070 0,153 0,43939

MULTICOLLINEARITY TEST RESULTS

Model

Collinearity Statistics

Model Tolerance VIF

TUOI 486 2.057 There is no multicollinearity

TTSA 441 2.268 There is no multicollinearity

TLTK 869 1.151 There is no multicollinearity

ROA 729 1.371 There is no multicollinearity

TLNO 408 2,450 There is no multicollinearity

BIG4 763 1.310 There is no multicollinearity

TSCD 456 2.195 There is no multicollinearity

TTCK 551 1.815 There is no multicollinearity

CPNG 796 1.256 There is no multicollinearity

a Dependent variable : CBTT

b Mean VIF: 1.76

Model Summary b

Model R R Square Adjusted R Square Std Error of the Estimate Durbin-Watson

a Predictors: (Constant), CPNG, TLTK, TSCD, ROA, TUOI, BIG4, TTCK, TTSA, TLNO

b Dependent Variable: CBTT

ANOVA a

Model Squares Sum of df Square Mean F Sig

a Dependent Variable: CBTT

b Predictors: (Constant), CPNG, TLTK, TSCD, ROA, TUOI, BIG4, TTCK, TTSA, TLNO

Coefficients a

Model

Unstandardized Coefficients Standardized Coefficients

B Std Error Beta

a Dependent Variable: CBTT

COMPARE RESEARCH FINDINGS TO PRIOR STUDIES

Factors in thesis

research Conclusion Previous studies have the same research results

Hossain and Reaz (2007) Menasa (2010)

Musa et al (2013) Nguyen Minh Huy (2015)

Total asset value REJECT H2

Musa et al (2013) Barako and Brown (2008)

Liquidity ratio REJECT H3 Agyei Mensah (2012) Rashid and Aikaeli (2015)

Hossain and Taylor (2007) Nguyen Minh Huy (2015) Khan and Abera (2015) Debt ratio REJECT H5 Agyei Mensah (2012) Khan and Abera (2015)

Big4 ACCEPT H6 Hossain and Taylor (2007) Hawashi (2014)

Fixed Asset Ratio REJECT H7 Nguyen Minh Huy (2015) Listing on the stock

Abdul Hamid (2004) Rashid and Aikaeli (2015)

Percentage of

foreign shares ACCEPT H9

Kribat (2009) Khan and Abera (2015) Lidiano et al (2015)

CHAPTER 4 CONCLUSIONS AND RECOMMENDATIONS

4.1 Conclusion

The study conducted a study on the information disclosure situation in the annual reports of 27 Vietnamese commercial banks in the period 2014-2019 on the basis of information data published by commercial banks in the report annual of 6 years of research The results of the information disclosure level of Vietnamese commercial banks in the annual report for the period 2014-2019 reached an average rate of more than 62% compared to the requirement The research model has introduced 9 factors for analysis including: age of the bank, operating scale, liquidity ratio, ROA rate, debt ratio, audit subject, fixed asset ratio determined in the total assets of the bank, the listing of shares

on the stock market and the proportion of foreign investment The model tested the hypotheses about the relationship between the characteristics

of the business performance of the bank with the level of disclosure in the annual report with the results showing a positive relationship between the factor of Big4 audit subject and the listing status on the stock market The remaining factors of the research model have a negligible influence on the level of information disclosure in the annual reports of Vietnamese commercial banks

4.2 Policy implications and solutions to improve the information disclosure problem of Vietnamese commercial banks