Luận văn the case study of joint stock commercial bank for investment and development

Figure 2.4: The information flow and reporting charmels outside Figure 2.5: The research process Figure 2.6: Assessement on Lime of disclosure al BIDV Figure 2.7 : Assessment on content

1.3 Pimeiple oÊ discÏosuUfe chọn HH ru eưưêc 19

1.3.1 Accuraey, fidolity and suffieieney coi ¬ 20 1.3.3 Disclosing information proraptly and regulariy _— 21

1.4 An overview of disclosure on Vietnam’s slock market 23

1.5 The case of disclosure activity al China Construction Bank 28

1.5.2 Empirical case of disclosure activities at China Construction Bank 29

2.1.2 The process of formation and đevelopmert - 3⁄4

2.2 Position of BIDV in the financial market - - 39

3.2.1 The leađing bank in prơject and enterprise financing 39

Retail banking - Mulichannel and modem distributien network - 41

2.3.3 Lixpansion of intemational investment and being a reliable counterparmer of

2.3.4 The leading bank in transparency and quality management 4 2.2.5 The first bank in implementing the policies of the Party and the Government,

2.3 Disclosure of mfonmalion a( BÍDV, icon ¬ 44

vii

2.4 Assessment on disclosure activitios at BIDV coi đỘI

2.4.1 Description of the Research process scssseseteesnssietsineinaenststntnnee 46 2.4.3 Researohi fnings cọ T002 1101m1 ereree 49

CHAPTER3: RECOMMENDATIONS AND ACTION PLANS TO IMPROVE,

DISCLOSURE ACTIVITY AT BIDV KH Hang ng th giờ 63

3,1 Recornmendations to aprove disclosure aotivity at BIDV co coi 63 3.1.1 Developing lnvestor Relations ])epartinebt ecoseoeesoroeoeooeo.08 3.1.2 Setting up Information Policy Of BLDV ijsssicrsestnmnseuetenseennse sae 65 3.1.3 Standardizing the internal disclosure process assecssssevestsensiueeteneneeneenOS

3.1.4 Building database and processing [alse infoniatien s5

3.1.5 Utilizing the role of spokesperson sees naetntnssaeotntntineinaeietststunsse 69 3.1.6 Building website for investors (TR potfa]) Seo CƠNC1/USION cac Lạ Hư HH HH HH HH reg 76

viii

Assessment on content of information disclosed

The level of interests in financial reports

The level of trderesls 1m non- Ginaricial information

A

smenl on RIDV website (Investor Relation portal)

Comparing the websile for imveslors

‘The action plan timetable

For the quantitative methods, the survey collccted and measured data using a logical and critical approach

Qualitative approach is more subjective in nature than quantitative approach

and involves examining and reflecting on the less tangible aspect of a

research subject, 2.g values, attitudes, perceptions Qualitative research involves analysis of data such as words (e.g., from interviews), pictures (e.g,

video), or objects (e.g., an artefact) Followings are some features of a quantitative research:

- The aim is a complete, detailed description

- Researcher may only know roughly in advance what he/she is looking

- Recommended during earlier phases of research projects

- ‘The design emerges as the study unfolds

- Researcher is the data gathering instrument

- Data is in the form of words, pictures or objects

- Subjective - individual’s interpretation of events is important, eg., uses participant observation, in-depth interviews etc

- Qualitative data is more ‘rich’, time consuming, and less able to be generalized

Researcher tends to become subjectively immersed im the subject matter

Qualitative research method, the common method business study, was based

on adequate assumptions, methods and data to draw suggestions and

conclusion Quantitative approach is on collecting and analyzing numerical

data, i, concentrates on measuring (he

ale, range, [requoney cic of

phenomena,

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)

To clarify the rescarch question, the rescarch will analyse the following two sub- research questions

1 Llow do investors assess the disclosure of information at IDV?

2 Which information would investors like to know?

In realizing its aim, the study will specifically focus on: Firstly, the Bank needs to evaluate the activity of IR function, especially the disclosure of information to make

sure iL follows lawsuil and mecls the needs of mveslors during the very firsl morths

of transforming into a public firm Secondly, the Bank needs to research to understand more aboul the law requirements and the needs of the investors sogarding disclosure in order to propare for the listing process of BIDV on the securities market

1.2 Research approach

Inductive and deductive research approaches are considered two general approaches

in business research in general However, the research process is a continuous and on-going process which combines the empirical observation, theoretical interpretation and exploration Therefore, this study employs the abductive research method that takes the advantages of both deductive and inductive approach and combines them

The author starled with cmpirical obscrvauions and scarches of academic literature Tlowever, the author realized that most research and articles studied were focus on

Tnvestor Relations activilies There are few academic articles or research studies

disclosure of information To the best of my knowledge, there is no literature which covers professional disclosure activities, especial in banking industry

Therefore, beside many empirical observations, the author interviewed some experts

in other banks and some colleagues in the IR department, and asked them to help ta provide information about workflow of IR and disclosure practices in other

countries.

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

Quantitative approach is one in which the rescarcher uses positivistic methodology to develop knowledge (e.g, cause and effect, test a hypothesis

sof mumencal dais For

or a theory) Quantitative research involves analy

this research, a quantitative survey will be conducted Foliowings are some

features of a quantitative research:

- The aim is to classify features, count them, and construct statistical

models in an attempt to explain what is observed

- Researcher knows clearly in advance whal he/she is looking for

- Recommended during latter phases of research projects

= Allaspecis of the study are carefully designed before dala is collected

- Researcher uses tools, stich as questionnaires or equipment to collect

numerical data

- Data is in the form of numbers and statistics

- Objective sceks precise miwasurement, & analysis of targel concopls,

2.g., Uses surveys, questionnaires etc

- Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail

Researcher tends to remain objectively separated from the subject matter,

In this study, the research questions will be used as the guidelines for the research

processes

1.1 Research purpose

The purpose of this research

s lo invesligale the disclosure activily al BIDV

Thorefore the main rescarch question is

How is Investor Relations and disclosure of information activitics at BIDV

INTRODUCTION

The disclosure of information is vitally important for cvalualion of a company’s progress by its shareholders and potential investors Such disclosure helps companies to attract investment and to remain trustworthy Insufficient or inaccurate information about a company van hinder the success[ul development of

its business

Shareholders and investors require regular access to reliable information, in particular to control the management bodies of the company and make informed decisions regarding the evaluation of its activities On the other hand, it is very important to make sure that the information disclosure requirements do not act against the company's interests and that no confidential information is disclosed, since il: may harm the company However, all resiriclions related {o disclosure must

be subject to strict regulations

As a bank which has just completed IPO and become a public firm, BIDV needs to follow the law of corporate disclosure However, for the Tast few months, disclosure

at BIDV has still been random and inconsistent when releasing information to investors and the press ‘Therefore; 13IDV needs to have a special department to fully understand the law of disclosure as well as to build a professional and effective disclosme provess in order to maximize the benefits for BIDV’s

shareholders

Motivated by the practical needs mentioned above, the research “Disclosure of

Information & The case study of Jomt stock commercial bank for investment

and development” bears a practical meaning to the joint stock corporates in

Viemam in general and to BIDV in particular

1 Rescarch methodology

Both qualitative and quantitative approaches are used to answer the research

questions

Further study will be taken on improvement of implomentation Invostor Relations activity in general and disclosure of information in particular when BIDV become a listed cornparry.

To clarify the rescarch question, the rescarch will analyse the following two sub- research questions

1 Llow do investors assess the disclosure of information at IDV?

2 Which information would investors like to know?

In realizing its aim, the study will specifically focus on: Firstly, the Bank needs to evaluate the activity of IR function, especially the disclosure of information to make

sure iL follows lawsuil and mecls the needs of mveslors during the very firsl morths

of transforming into a public firm Secondly, the Bank needs to research to understand more aboul the law requirements and the needs of the investors sogarding disclosure in order to propare for the listing process of BIDV on the securities market

1.2 Research approach

Inductive and deductive research approaches are considered two general approaches

in business research in general However, the research process is a continuous and on-going process which combines the empirical observation, theoretical interpretation and exploration Therefore, this study employs the abductive research method that takes the advantages of both deductive and inductive approach and combines them

The author starled with cmpirical obscrvauions and scarches of academic literature Tlowever, the author realized that most research and articles studied were focus on

Tnvestor Relations activilies There are few academic articles or research studies

disclosure of information To the best of my knowledge, there is no literature which covers professional disclosure activities, especial in banking industry

Therefore, beside many empirical observations, the author interviewed some experts

in other banks and some colleagues in the IR department, and asked them to help ta provide information about workflow of IR and disclosure practices in other

countries.

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)

INTRODUCTION

The disclosure of information is vitally important for cvalualion of a company’s progress by its shareholders and potential investors Such disclosure helps companies to attract investment and to remain trustworthy Insufficient or inaccurate information about a company van hinder the success[ul development of

its business

Shareholders and investors require regular access to reliable information, in particular to control the management bodies of the company and make informed decisions regarding the evaluation of its activities On the other hand, it is very important to make sure that the information disclosure requirements do not act against the company's interests and that no confidential information is disclosed, since il: may harm the company However, all resiriclions related {o disclosure must

be subject to strict regulations

As a bank which has just completed IPO and become a public firm, BIDV needs to follow the law of corporate disclosure However, for the Tast few months, disclosure

at BIDV has still been random and inconsistent when releasing information to investors and the press ‘Therefore; 13IDV needs to have a special department to fully understand the law of disclosure as well as to build a professional and effective disclosme provess in order to maximize the benefits for BIDV’s

shareholders

Motivated by the practical needs mentioned above, the research “Disclosure of

Information & The case study of Jomt stock commercial bank for investment

and development” bears a practical meaning to the joint stock corporates in

Viemam in general and to BIDV in particular

1 Rescarch methodology

Both qualitative and quantitative approaches are used to answer the research

questions

Further study will be taken on improvement of implomentation Invostor Relations activity in general and disclosure of information in particular when BIDV become a listed cornparry.

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)

For the quantitative methods, the survey collccted and measured data using a logical and critical approach

Qualitative approach is more subjective in nature than quantitative approach

and involves examining and reflecting on the less tangible aspect of a

research subject, 2.g values, attitudes, perceptions Qualitative research involves analysis of data such as words (e.g., from interviews), pictures (e.g,

video), or objects (e.g., an artefact) Followings are some features of a quantitative research:

- The aim is a complete, detailed description

- Researcher may only know roughly in advance what he/she is looking

- Recommended during earlier phases of research projects

- ‘The design emerges as the study unfolds

- Researcher is the data gathering instrument

- Data is in the form of words, pictures or objects

- Subjective - individual’s interpretation of events is important, eg., uses participant observation, in-depth interviews etc

- Qualitative data is more ‘rich’, time consuming, and less able to be generalized

Researcher tends to become subjectively immersed im the subject matter

Qualitative research method, the common method business study, was based

on adequate assumptions, methods and data to draw suggestions and

conclusion Quantitative approach is on collecting and analyzing numerical

data, i, concentrates on measuring (he

ale, range, [requoney cic of

phenomena,

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

Further study will be taken on improvement of implomentation Invostor Relations activity in general and disclosure of information in particular when BIDV become a listed cornparry.

Quantitative approach is one in which the rescarcher uses positivistic methodology to develop knowledge (e.g, cause and effect, test a hypothesis

sof mumencal dais For

or a theory) Quantitative research involves analy

this research, a quantitative survey will be conducted Foliowings are some

features of a quantitative research:

- The aim is to classify features, count them, and construct statistical

models in an attempt to explain what is observed

- Researcher knows clearly in advance whal he/she is looking for

- Recommended during latter phases of research projects

= Allaspecis of the study are carefully designed before dala is collected

- Researcher uses tools, stich as questionnaires or equipment to collect

numerical data

- Data is in the form of numbers and statistics

- Objective sceks precise miwasurement, & analysis of targel concopls,

2.g., Uses surveys, questionnaires etc

- Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail

Researcher tends to remain objectively separated from the subject matter,

In this study, the research questions will be used as the guidelines for the research

processes

1.1 Research purpose

The purpose of this research

s lo invesligale the disclosure activily al BIDV

Thorefore the main rescarch question is

How is Investor Relations and disclosure of information activitics at BIDV

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

Quantitative approach is one in which the rescarcher uses positivistic methodology to develop knowledge (e.g, cause and effect, test a hypothesis

sof mumencal dais For

or a theory) Quantitative research involves analy

this research, a quantitative survey will be conducted Foliowings are some

features of a quantitative research:

- The aim is to classify features, count them, and construct statistical

models in an attempt to explain what is observed

- Researcher knows clearly in advance whal he/she is looking for

- Recommended during latter phases of research projects

= Allaspecis of the study are carefully designed before dala is collected

- Researcher uses tools, stich as questionnaires or equipment to collect

numerical data

- Data is in the form of numbers and statistics

- Objective sceks precise miwasurement, & analysis of targel concopls,

2.g., Uses surveys, questionnaires etc

- Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail

Researcher tends to remain objectively separated from the subject matter,

In this study, the research questions will be used as the guidelines for the research

processes

1.1 Research purpose

The purpose of this research

s lo invesligale the disclosure activily al BIDV

Thorefore the main rescarch question is

How is Investor Relations and disclosure of information activitics at BIDV

Further study will be taken on improvement of implomentation Invostor Relations activity in general and disclosure of information in particular when BIDV become a listed cornparry.

INTRODUCTION

The disclosure of information is vitally important for cvalualion of a company’s progress by its shareholders and potential investors Such disclosure helps companies to attract investment and to remain trustworthy Insufficient or inaccurate information about a company van hinder the success[ul development of

its business

Shareholders and investors require regular access to reliable information, in particular to control the management bodies of the company and make informed decisions regarding the evaluation of its activities On the other hand, it is very important to make sure that the information disclosure requirements do not act against the company's interests and that no confidential information is disclosed, since il: may harm the company However, all resiriclions related {o disclosure must

be subject to strict regulations

As a bank which has just completed IPO and become a public firm, BIDV needs to follow the law of corporate disclosure However, for the Tast few months, disclosure

at BIDV has still been random and inconsistent when releasing information to investors and the press ‘Therefore; 13IDV needs to have a special department to fully understand the law of disclosure as well as to build a professional and effective disclosme provess in order to maximize the benefits for BIDV’s

shareholders

Motivated by the practical needs mentioned above, the research “Disclosure of

Information & The case study of Jomt stock commercial bank for investment

and development” bears a practical meaning to the joint stock corporates in

Viemam in general and to BIDV in particular

1 Rescarch methodology

Both qualitative and quantitative approaches are used to answer the research

questions

INTRODUCTION

The disclosure of information is vitally important for cvalualion of a company’s progress by its shareholders and potential investors Such disclosure helps companies to attract investment and to remain trustworthy Insufficient or inaccurate information about a company van hinder the success[ul development of

its business

Shareholders and investors require regular access to reliable information, in particular to control the management bodies of the company and make informed decisions regarding the evaluation of its activities On the other hand, it is very important to make sure that the information disclosure requirements do not act against the company's interests and that no confidential information is disclosed, since il: may harm the company However, all resiriclions related {o disclosure must

be subject to strict regulations

As a bank which has just completed IPO and become a public firm, BIDV needs to follow the law of corporate disclosure However, for the Tast few months, disclosure

at BIDV has still been random and inconsistent when releasing information to investors and the press ‘Therefore; 13IDV needs to have a special department to fully understand the law of disclosure as well as to build a professional and effective disclosme provess in order to maximize the benefits for BIDV’s

shareholders

Motivated by the practical needs mentioned above, the research “Disclosure of

Information & The case study of Jomt stock commercial bank for investment

and development” bears a practical meaning to the joint stock corporates in

Viemam in general and to BIDV in particular

1 Rescarch methodology

Both qualitative and quantitative approaches are used to answer the research

questions

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)

INTRODUCTION

The disclosure of information is vitally important for cvalualion of a company’s progress by its shareholders and potential investors Such disclosure helps companies to attract investment and to remain trustworthy Insufficient or inaccurate information about a company van hinder the success[ul development of

its business

Shareholders and investors require regular access to reliable information, in particular to control the management bodies of the company and make informed decisions regarding the evaluation of its activities On the other hand, it is very important to make sure that the information disclosure requirements do not act against the company's interests and that no confidential information is disclosed, since il: may harm the company However, all resiriclions related {o disclosure must

be subject to strict regulations

As a bank which has just completed IPO and become a public firm, BIDV needs to follow the law of corporate disclosure However, for the Tast few months, disclosure

at BIDV has still been random and inconsistent when releasing information to investors and the press ‘Therefore; 13IDV needs to have a special department to fully understand the law of disclosure as well as to build a professional and effective disclosme provess in order to maximize the benefits for BIDV’s

shareholders

Motivated by the practical needs mentioned above, the research “Disclosure of

Information & The case study of Jomt stock commercial bank for investment

and development” bears a practical meaning to the joint stock corporates in

Viemam in general and to BIDV in particular

1 Rescarch methodology

Both qualitative and quantitative approaches are used to answer the research

questions

Quantitative approach is one in which the rescarcher uses positivistic methodology to develop knowledge (e.g, cause and effect, test a hypothesis

sof mumencal dais For

or a theory) Quantitative research involves analy

this research, a quantitative survey will be conducted Foliowings are some

features of a quantitative research:

- The aim is to classify features, count them, and construct statistical

models in an attempt to explain what is observed

- Researcher knows clearly in advance whal he/she is looking for

- Recommended during latter phases of research projects

= Allaspecis of the study are carefully designed before dala is collected

- Researcher uses tools, stich as questionnaires or equipment to collect

numerical data

- Data is in the form of numbers and statistics

- Objective sceks precise miwasurement, & analysis of targel concopls,

2.g., Uses surveys, questionnaires etc

- Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail

Researcher tends to remain objectively separated from the subject matter,

In this study, the research questions will be used as the guidelines for the research

processes

1.1 Research purpose

The purpose of this research

s lo invesligale the disclosure activily al BIDV

Thorefore the main rescarch question is

How is Investor Relations and disclosure of information activitics at BIDV

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

To clarify the rescarch question, the rescarch will analyse the following two sub- research questions

1 Llow do investors assess the disclosure of information at IDV?

2 Which information would investors like to know?

In realizing its aim, the study will specifically focus on: Firstly, the Bank needs to evaluate the activity of IR function, especially the disclosure of information to make

sure iL follows lawsuil and mecls the needs of mveslors during the very firsl morths

of transforming into a public firm Secondly, the Bank needs to research to understand more aboul the law requirements and the needs of the investors sogarding disclosure in order to propare for the listing process of BIDV on the securities market

1.2 Research approach

Inductive and deductive research approaches are considered two general approaches

in business research in general However, the research process is a continuous and on-going process which combines the empirical observation, theoretical interpretation and exploration Therefore, this study employs the abductive research method that takes the advantages of both deductive and inductive approach and combines them

The author starled with cmpirical obscrvauions and scarches of academic literature Tlowever, the author realized that most research and articles studied were focus on

Tnvestor Relations activilies There are few academic articles or research studies

disclosure of information To the best of my knowledge, there is no literature which covers professional disclosure activities, especial in banking industry

Therefore, beside many empirical observations, the author interviewed some experts

in other banks and some colleagues in the IR department, and asked them to help ta provide information about workflow of IR and disclosure practices in other

countries.

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

For the quantitative methods, the survey collccted and measured data using a logical and critical approach

Qualitative approach is more subjective in nature than quantitative approach

and involves examining and reflecting on the less tangible aspect of a

research subject, 2.g values, attitudes, perceptions Qualitative research involves analysis of data such as words (e.g., from interviews), pictures (e.g,

video), or objects (e.g., an artefact) Followings are some features of a quantitative research:

- The aim is a complete, detailed description

- Researcher may only know roughly in advance what he/she is looking

- Recommended during earlier phases of research projects

- ‘The design emerges as the study unfolds

- Researcher is the data gathering instrument

- Data is in the form of words, pictures or objects

- Subjective - individual’s interpretation of events is important, eg., uses participant observation, in-depth interviews etc

- Qualitative data is more ‘rich’, time consuming, and less able to be generalized

Researcher tends to become subjectively immersed im the subject matter

Qualitative research method, the common method business study, was based

on adequate assumptions, methods and data to draw suggestions and

conclusion Quantitative approach is on collecting and analyzing numerical

data, i, concentrates on measuring (he

ale, range, [requoney cic of

phenomena,

2 Significant

By viewing the theory and the practice of Investor Relations and Disclosure activity

this research benefits BIDV in recommendation to building a professional and

effective disclosure of information process and improve the qualitative of Investor

Relations of BIDV From that increase invisible value of the bank and attract more

potential investors

3 Delimitation

Firstly, the research focuses mainly on the disclosure activity in particular and Investor Relations in general

Secondly, because of time and relationship limitation, the research is limited in the

sense that small scale of sample in interview and questioning Geographic distance

is one of the reasons that email survey was chosen

Thirdly, BIDV has become a large-scale public company and been going to listed

company Therefore, the research is limited for the public company

Finally, to the best of my knowledge, this is the first study of disclosure of information Consequently, the research limited by the lack of available academic

research on the subjects related to the research questions

4 Disseminations

The result of research will useful for not only disclosure activity of BIDV in

particular but also for other companies which are going to be public and listed on

stock market

The finding in theory will help public and listed company to understand the

practices and legal requirement of disclosure of information Therefore, he research finds may serve as a source of references for concerned agencies to improve their understanding about information disclosure as well as the quality of disclosure

activities at their own banks or listed companies

5 Follow-up

LIST OF FIGURES

Figure2.1: The organization chart of BIDV HH en

Tigue 2.2: BIDV Key Sưongtls

Figure 2.3: Financial capaoity of BIDV and other banks

Figure 2.4: The information flow and reporting charmels outside

Figure 2.5: The research process

Figure 2.6: Assessement on Lime of disclosure al BIDV

Figure 2.7 : Assessment on content of information disclosed

Figure 2.8: The lovel of interests in financial reports

Figure 2.9: Quality of BIDV’s financial reports

Figure 2.10: The level of interests in non- financial information

Figure 2.11: The level of interests in non-financial information

Figure 2.12: Means to get BTDV’s information

Figure 2.13: Assessment on BIDV website (Investor Relalion portal)