To analyze the impact of these reasons for frauds in the financial statements company listed on Vietnam Stock Market based on actual survey results. To give recommendations for the government, auditors to control, detect and forecast fraudulent financial statements of listed companies on Vietnam stock market.
Trang 1CHAPTER 1 THE INTRODUCTION ABOUT RESEARCH
1.1 The need of research
Recently, fraudulent financial statements have been increasingly
becoming a serious problem for the government, listed companies and
investors, which threaten the fairness of financial market and enterprises The
impact of the economic crisis in the world led to the financial exhaustion of
enterprises and rise in bankrupt and motivations for fraud behaviors towards
financial statements That has resulted in an urgent need to handle with
fraud financial statements of companies listed on Vietnam's stock market
Many researchers believe that statistics just pointed out economic
damages caused by fraudulent behaviors towards financial statements but not
measure intangible losses such as belief and negative impacts on the stock
market when not all of the financial statement frauds were
detected According to ACFE (2014), only about 3% of the fraud financial
behaviors were detected in 2014 over the world Besides, the audit reports
point out only whether there is any fraud but fail to give reasons of fraud
behaviors towards financial statements Therefore, the study of key factors
resulting in fraud financial statements give contributions in improving the
efficiency of corporate governance and enacting feasible policies to control
frauds financial statements of companies listed in the stock market of
Vietnam effectively
There have been many studies on fraudulent financial statements in
countries with developed economy as the US, UK, Australia where the
subjects using financial statements are well aware of the role of honesty and
accuracy of information provided in the financial statements However,
according to in the author’s understanding, such studies are limited while the
topic is receiving a lot of attention from business managers, users of financial
statements, investors and management agencies Furthermore, the limitations
of the accounting system itself in Vietnam and the specific characteristics of
financial statements, the activities of listed companies also are the sources of
fraud behaviors of financial statements Thus, the thesis chooses the specific
context of the stock market in Vietnam to study the key factors affecting the
2 fraud behaviors of financial statement are necessary
1.2 Overview of relating studies
Research on factors resulting in frauds financial statements mainly done
by foreign researchers in many different stages of various the system international auditing standards SAS (No 16, No 53, No 82, No 99) and ISA No 240 One noticeable difference is that there are studies being conducted with a combination of influent factors while some other studies just delve into a specific factor Such studies based mainly on theoretical fraud weight table with the warning signs of red (Red flags) initiated by Romney et al (1980) and fraud triangle theory (fraud triangle) by Cressey (1953)
In Vietnam, researches related to this topic has also been discussed but mainly in terms of auditing statements and behaviors of adjusting profit while factors affecting fraud behaviors of financial statements are ignored or not the mail goals of research Thus, studies of factors affecting frauds financial statements have not yet systematized fully and not examined the impact of these factors to fraud financial reports (Ngo Thi Thu Ha, 2007; Ha Hong Hanh, 2012; Nguyen Thi Phuong, 2012)
Regarding model research, to detect fraud behaviors financial statements, studies of DeAngelo (1986), Friedlan (1994), Healy (1985) and Jones (1991) used the model accrual adjustments (Discretionary accruals models) Another model also mentioned is the F-score model of Dechow et al (2011) This model was also developed based on the M-score of Beneish, which supplement non-financial variables and market data to external variables of financial statements In Vietnam, there are some studies using accrual models such as Nguyen Thi Uyen Phuong (2014), Phan Thi Thuy Duong (2015) The studies using typically statistical techniques include the research by Pham Thi Bich Van (2013) and the study of Nguyen Tran Nguyen Tran, 2014 and Hoang Khanh & Tran Thi Thu Hien, 2015 applying the model Beneish anticipated misstatement of the financial statements (Appendix 2.2) The limitation of these studies is the application of available models without any modification to be match with Vietnam's stock market
Trang 21.2.2 The flaws of such researches
The limitation of relating researches as mentioned above prove the
necessity of this thesis which focus studying the topic in the context of stock
market of Vietnam with characteristics of an emerging stock market and in
the context that studies of frauds financial statements much less The thesis is
expected to overcome the limitations of the theoretical basis, the choice of
variable sizes and methods of previous studies, especially previous studies on
this topic in Vietnam
1.3 Objectives and research questions
1.3.1 Research objectives
(1) To determine the content of appropriate theoretical foundation
applied in research, content, manner of fraudulent financial statements
(2) To identify the reasons for fraudulent financial statements of the
listed companies matching context of the reality of Vietnam Stock Market
(3) To analyze the impact of these reasons for frauds in the financial
statements company listed on Vietnam Stock Market based on actual survey
results
(4) To give recommendations for the government, auditors to control,
detect and forecast fraudulent financial statements of listed companies on
Vietnam stock market
1.3.2 Research questions
Question 1: What is the theoretical basis used as a foundation to study
reasons for fraudulent financial statements?
Question 2: What are kinds of reason for/ factors of fraudulent behavior
towards financial statements of the listed companies on the stock market in
Vietnam?
Question 3: How do these factors affect the motivation, pressure,
opportunities and attitudes to fraudulent financial statements at listed
companies on stock market in Vietnam nowadays?
Question 4: What are recommendations to maximally control fraudulent
financial statements of listed companies on Vietnam stock market?
4
1.4 Subject and scope of the thesis
1.4.1 Subject of the thesis
Research object of the thesis is that the factors affecting fraudulent financial statements at listed companies on the stock market Vietnam from the perspective of independent audit companies legally approved
1.4.2 Scope of research
The thesis focuses on studying factors affecting fraudulent financial statements, which are based on the triangle of frauds in accordance with the audit standards Vietnam No 240 (VSA 240) and red signs red in the model scales cheating on practical aspects of management This study focus on nonfinancial corporations in Vietnam stock market
1.5 New contributions of the thesis
1 Determine the study theoretical basis on the factors affecting fraudulent financial statements of listed companies consistent with the context of Vietnam's stock market
2 Through interviews with experts in stock market, finance and audit, the author has developed new 10 measurement criteria of group 3 independent variables include legal environment, macroeconomic environment and the control of the State for fraud financial statements, which fit the actual situation
in Vietnam
3 Develop and test a model study of factors affecting fraudulent financial statements of the listed companies on the stock market of Vietnam The results
of surveying 485 auditor show that, in 12 independent variables of explaining significant causes of fraudulent financial statements of the listed companies, there are eight variables with positive signs which suggests a positive relationship between these variables and the dependent variables mean fraudulent financial statements 4 remaining variables include the characters of Board of Directors, control of the State, Independent Auditors and the qualifications of managers have a negative correlation to the fraudulent financial statements, which demonstrate that the greater impacts these factors have, the less likelihood fraudulent financial statements happen in listed company in the securities market of Vietnam
1.6 Research process
Trang 35 Based on research objectives and research questions, process of thesis
research is reflected in the following diagram:
Figure 1.1: process of thesis research 1.7 Structure of the thesis
The thesis includes 5 chapters as follows:
Chapter 1: Introduction about research topics
Chapter 2: Rationale for fraudulent behaviors towards financial statements
of listed companies and the influencing factors
Chapter 3: Research Methodology
Chapter 4: Findings
Chapter 5: Discussion of findings and recommendations
CHAPTER 2:
THE LITERATURE REVIEW OF FRAUDULENT BEHAVIOR OF
FINANCIAL STATEMENTS OF LISTED COMPANIES AND OTHER
INFLUENTIAL FACTORS 2.1 Overview of fraudulent financial statements
2.1.1 The concept of frauds and fraudulent financial statements
2.1.1.1 The concept of fraud
Around the world, Edwin H Sutherland, the researcher on American crimes
who gave birth to the term "white - collar crime", refers this concept to fraudulent
Fin dings
3 To analyze the impact of these reasons
for frauds in the financial statements
company listed on Vietnam Stock Market
4 Recommendations
- Overview of relating studies
- Qualitative methods
Quantitative methods
Research objectives
1 To build research models.
2 To identify the reasons for fraudulent
financial statements of the listed companies
Research Methodology
6 behavior by the senior executives of the company cheating the public The later studies have used this term to replace other common terms of frauds
In the scope of research, the thesis focus on fraudulent behaviors in accordance with the Vietnam Auditing Standards No 240 (VSA 240) Accordingly, "Fraud is an intentional act by one or more persons in the Board of Management, Board of Directors, employees or third party done by the fraudulent acts to gain illicit or illegal interests"
2.1.1.2 The concept of fraudulent financial statements
Based on the term "white - collar crime" by Edwin H Sutherland, fraudulent behaviors towards financial statements often refer to fraudulent behaviors by managers of listed companies The concept of fraudulent financial statements fraud are mentioned by many researchers
Within the scope of research, the thesis focuses on fraudulent behaviors in accordance with the Vietnam Auditing Standards No 240 (VSA 240) According
to VSA 240 and ISA 240, "Frauds in financial statements are behaviors of changing and tampering with accounting documents; behaviors of falsifying or intentionally not presenting or deliberately omitting important information of financial statements; behaviors of intentionally misapplying, not complying with accounting principles in setting financial statements to cheat the users of financial statements"(Ministry of Finance, 2012)
2.1.1.3 Distinguish frauds with errors of financial statements
To reinforce arguments for fraudulent behaviors of financial statements, it is necessary to differ errors of financial statements from fraudulent behaviors of financial statements to recognize the sophistication and seriousness of such fraudulent behaviors Although errors are far from fraud in terms of science, they still easily become confused in terms of influent factors
Frauds and errors are all potential mistakes in the financial statements of enterprises, falsifying calculations reflected in the financial statements and hereby the actual business situation of enterprises.m
In this thesis, the author focus studying fraudulent behaviors of financial statements due to spillover effects of this behavior to listed enterprises in Vietnam stock market and the sustainable development of listed companies in Vietnam stock market
Trang 42.1.2 Forms of fraudulent behaviors of financial statements
The results of reaseachs by the COSO (2010), Ngo Thi Thu Ha (2007),
ACFE (2012), Nguyen Thi Huong Giang (2013), Le Nguyen The Cuong (2013)
show that the overblown declaration in profits / assets is the common form of
fraudulent behavior of the financial statements by listed companies Thus, the
thesis focuses on studying this common form
2.1.3 Execution engine of fraud financial statements
In this thesis, the author generalizes some popular motivations of fraudulent
behaviors of financial statements, namely financial stability, pressure from third
parties and financial goals
2.1.4 Drawbacks of fraudulent behavior of financial statements
For listed companies which have frauds in their financial statements, if they
are detected, they will suffer serious consequences such as bankruptcy and severe
reduce in prestige
For investors who focus most on the efficient use of capital, if financial
statements intentionally are frauds, their expectations for listed companies will
become too high or too low and hereby directly affect the profitability of capital
and even lose capital invested in
For lenders especially the financial institutions like banks, they will be more
risks when lending such businesses In case of such enterprise become insolvent,
the system of banks will be affected in general and hereby reduce the national
economic growth
For tax authorities and related agencies: reduce the amount of tax payable
and tax losses and hereby reduce the budget revenues of the state, adversely
affecting the growth and prosperity of the country
2.1.5 Some common problems of the stock market and companies
listed on the stock market affect financial statements
2.1.5.1 Stock market
Under the Securities Law of Vietnam, No 70/2006/Congress 11 and
amended by the Law No 62/2010/Congress 12, "Stock market is a market
organized where buying and selling listed securities are implemented"
2.1.5.2 Companies listed on the stock market
Features of listed companies affect financial statements
8 The following characteristics of listed companies impact financial statements:
- The number of shareholders: The number of shareholder of listed companies fairly complex and change from time to time, which is difficult to control
- Mechanisms and Management: The operations of listed companies are controlled from many legal regulations within and outside company This is sources of pressure to the management of listed companies
- The requirements of high transparency and very sensitiveness towards financial statements of listed companies: This could be motivations of fraudulent behaviors of statements in order to match with such requirements
- Characteristics of business line of listed companies if complex and various will be difficult to detect fraudulent behaviors of financial statements, which requires auditors must be experienced, professional with multidisciplinary understanding and the auditing procedure must be professional
- Monitoring business targets reflected in financial statements is fairly complex and often highly variable, which give opportunities for listed companies
to make fraudulent behaviors of financial statements for its self-interest
- The business of listed companies is usually different, may be in forms of parent company with subsidiaries, cross-investments, operating throughout the country, which make auditors difficult to detect fraudulent behaviors of financial statements if happens
- The internal control systems of listed companies still weak
2.2 The theory applied to study fraudulent behaviors of financial statements of listed companies
Historical development of research projects related to fraudulent behaviors through the platforms of theory as follows:
- The theory of information asymmetry
- Representative Theory
- Scales theory of frauds based on red signs
- Fraud triangle theory
Trang 52.3 Overview of research on influent factors towards fraudulent
behaviors of financial statements of listed companies
In addition to an overview of research on the topic, the thesis focuses
summarizing relevant research on factors affecting fraudulent behaviors of
financial statements which are considered in many different aspects Accordingly,
groups of factors include:
2.3.1 Factors of motivation/ pressure
- Financial Stability
- Pressure from 3rd party
- Financial Goals
2.2.1 Factors of opportunity
- Characteristics of financial statements and business activities of listed
companies
- The quality of internal control systems
- Business scale of listed companies
- Characteristics of board of directors of listed companies
- Legal environment
- Macro - economic Environment
- Independent audit
- Control of the state
2.2.2 Attitudinal factors
- Standards of professional ethics of leadership
- Professional qualification of leadership
- Awareness and understanding of leadership about legal system
- Attitude, professionalism of the leadership
CHAPTER 3:
RESEARCH METHODS OF FACTORS AFFECTING FRAUDULENT
BEHAVIORS OF THE FINANCIAL STATEMENTS OF LISTED
COMPANIES IN VIETNAM STOCK MARKET
3.1 Qualitative methods
10 Qualitative methods are used to explore, adapt and complement the variables used to measure the factors and criteria used in the study, ensure the scale developed in accordance with theory and concretized by reality
First, this method is implemented by studying documents and conducted a review of previous studies in Vietnam and in abroad, thereby determining the factors affecting fraudulent behaviors of financial statements Next, this method is implemented through in-depth interviews with experienced experts in securities, finance and accounting
3.2 Quantitative methods
The author used the results of interviews with such experts as the input for quantitative research methods In this method, the author used survey to statistical description of fraudulent behaviors of financial statements and conduct research hypothesis
On the basis of theory, reality and results of situation analysis and expert consultancy, the author inherited the research model of triangular fraud and model of fraud scales to develop the research model of the thesis
Based on such research models, the hypotheses set as follows:
H: factors of pressure /motivation (DCAL), opportunity (CH), attitude (TD)
of managers have impacts on frauds in setting financial statements of the non-financial companies in the stock market of Vietnam
The factors selected for the survey includes 15 elements (3 factors of pressure/ motivation; 8 factors of opportunity; 4 factors of attitude of managers) These factors are assessed as popular and important factors through studies in Vietnam and over the world, results of in-depth interviews with experts
in the field of securities, finance and accounting in Vietnam
Trang 6Chart 4.1: Research Models
Financial Stability (H1)
Awareness, understanding of
the law of leadership (H14)
Attitude, professionalism of
the leadership (H15)
Group factors of motivation / pressure
Group of opportunity factors
Group attitudinal factors
FRAUDULENT BEHAVIOR OF THE FINANCIAL STATEMENTS
Pressure from 3rd party (H2)
Financial Goals (H3)
Characteristics and activities of the
professions listed company (H4)
The quality of internal control
systems (H5)
Scale listed company (H6)
Characteristics of the board
listed company (H7)
Regulatory environment (H8)
Macro economic Environment
(H9)
Independent audit (H10)
Control of the state for acts of
fraud financial statements (H11)
Standards of professional
ethics of leadership (H12)
Professional qualification of
leadership (H13)
12 Samples (selected respondents) to send the survey is the independent auditors
Collecting data: Total votes that the author surveyed was 650, under two forms: Send by mail and send directly to the surveyed respondents Total votes surveys recovered 485 valid votes (accounting for 74.62%) The responses received had high reliability and expressed the respondents’ consciousness to the answer as well as their deep understanding of the questions in the survey Then declare and transfer the data in SPSS Test the reliability of the scale for the variable factors with Cronbach Alpha index Finally evaluating the results of descriptive statistics
Data processing method
Step 1: Quantifying the standards of each group of factors by calculating the minimum value, maximum value, average value, standard deviation
Step 2: Checking the reliability of scaling factors in the research model by the means of Cronbach's coefficient alpha reliability and coefficient correlation of total variation
Step 3: Analyzing the factors explored EFA through SPSS 22 software processing to remove criteria of observation not meeting the standards
Step 4: Correlation analysis: The correlation analysis said whether there is a relationship between variables in the model study with each other or not If the coefficient correlation is zero, the variables are independent of each other, other correlations of variables can see the have a relationship with each other
Step 5: Analyzing multiple regression will indicate the level of influence of each factor to fraudulent behaviors of financial statements of listed companies in the stock market of Vietnam through the regression coefficients
The form of Multivariate regression model study as follows:
GL = α+ β1TC + β2AL + β3MT + β4NN + β5KSNB + β6QM + β7HĐQT +β8PL + β9KIỂM TOÁN VIÊNM + β10KTĐL +β11KSNN + β12DĐ +β13CM +β14NT +β15CN + ei
Trang 7CHAPTER 4:
RESEARCH RESULTS 4.1 Results of respondents’ demographic information
The years of experience of surveyed respondents is over 5 years in average,
accounting for over 90% and the rate of auditors having experience in fraud
detection is 76.7% These rates proved the reliability of the survey of factors
affecting frauds financial statements at listed companies on stock market Vietnam
for the result of the thesis
4.2 Findings of fraudulent behaviors of financial statements of
companies listed on Vietnam's stock market
4.2.1 Results of descriptive statistics
In terms of forms of implementing fraudulent behaviors of financial
statements, the form of overdumbed declarations on profits / assets accounted for
the highest average value at 2.91 points, comparing to other two forms of
fraudulent behaviors of financial statements In particular, conditioned form
profits / assets 2.85 points and the forms of frauds in understating (less common)
profit / assets (2.74 points)
In terms of evaluation criteria for the factors affecting fraudulent behaviors
of financial statements of listed companies in the stock market of Vietnam The
survey results show that the criteria used to evaluate the fraudulent behavior of
the financial statements of listed companies usually based on criteria on how of
sophisticated performance and how difficult to detect common (4.48 points),
followed by the criteria of scale of fraudulent behaviors of financial statements
implemented (4.71 points) and the criteria frequency of of such frauds (4.17
points)
4.2.2 Assess the reliability of the scale
As a result of testing the reliability of the scale, Cronbach's alpha indices are
greater than 0.8 demonstrate that the scale will ensure the reliability of measuring
the popularity of the form, manner and items potentially frauds in setting
financial statements and factors affecting fraudulent behaviors of financial
statements in the stock market in Vietnam
4.3 The results of research on factors affecting fraudulent behaviors of
financial statements of listed companies listed in Vietnam's stock market
14
4.3.1 Results of descriptive statistics
The results of the analysis run on SPSS shows that indicators of mean value (mean) and standard deviation (Std Deviation) are high, which implied that they are the factors affecting fraudulent behaviors of financial statements of the listed companies in the stock market of Vietnam
4.3.2 Testing the reliability of the scale factors in the research model
Results after testing the reliability of the scale of 15 factors in the research model evaluating the effects of these factors on fraudulent behaviors of financial statements of the listed companies in the stock market of Vietnam based on the Cronbach Alpha and generation system of total correlated variables to remove two criteria of measurement, namely the activity of testing, monitoring and degree of changes of tax policy because of their low correlation coefficients
4.3.3 Result of analysis to discover factors EFA
The use of analytical methods to discover factors that will help the author abstract from many observed variables into the underlying components which represent the entire data By methods of analysis to discover factors, there is no distinction between independent variables and the dependent variable (Hair et al, 1998) Therefore, the author analyzed the factors explored with the same independent variables and the dependent variable in the model are analyzed separately To be able to apply the EFA analysis, variables must be interrelated To ensure the explanation of contents of the factors obtained from analysis results EFA, the author select criteria factors as follows:
- Factor loading> 0.5
- 0.5 <KMO <1
- Inspection of Bartlett test with Sig <0.05
- The variance explained> 50%
Toolkits with variance explained at a high level This result is consistent with the results of the author when building toolkit as well as the previous authors have used This could be explained that the toolkit was evaluated on an issue, thus the basic content was divided into different groups This represents high level of the stability of toolkit
Trang 84.3.4 The results of correlation analysis
The purpose of performing correlation analysis is to determine whether or
not there is a linear relationship between the dependent variable of the fraudulent
behavior of financial statements and independent variables (15 impact factors
mentioned above) The result of this analysis is the basis for regression
analysis Also, the correlation analysis also serves as a basis for detecting the
phenomenon of multicollinearity in the research model If the correlation
coefficient is 0, you can view the variables are independent from each other If
the correlation coefficient is other than 0, you can view the variables analyzed
have a relationship with each other Results of research on the relationship
between variables correlation is obtained as follows:
Based on the results of the analysis, the value of P-value corresponding to
each independent variable with the dependent variable is the fraudulent behaviors
of financial statements of companies listed in Vietnam's stock market, which have
the value smaller than the significance level of 0, 05 And other Pearson
correlation coefficient of 0 proved that there is correlated relationship between
independent variables and the dependent variable
4.3.5 Results of multivariate regression analysis
Regression analysis is to assess the impact of these factors to the fraudulent
behavior of the financial statements company listed in Vietnam’s securities
market Due to the correlation between the independent variables and the
dependent variable is quite tight, it is necessary to test multicollinearity before
performing regression analysis Multicollinearity phenomenon (Multicollinearity)
is the phenomenon that independent variables have almost linear relationship with
each other Ignoring multicollinearity often lead to the fact that standard errors
are higher, statistical value are lower and even not meaningful To examine this
phenomenon, we use a measure of magnification variance (Variance Inflation
Factor - VIF) to test the phenomenon of correlation between independent
variables Provided that VIF <2 is no multicollinearity Nguyen Dinh Tho (2013),
(Dinh Phi Ho, 2014)
Results showed that at VIF of the variables included in the model are very
low, less than 2 So multicollinearity does not occur between these variables
16
The level of interpretation of the model
To assess the suitability of the model, we based on the F-statistic values and the Adjusted R2
Model Summary b
R 2
Std Error of the Estimate Durbin-Watson
a Predictors: (Constant), CN, HĐQT, ĐĐ, KTV, KSNB, CM, MT, AL,
NN, KTĐL, NT, TC, PL, QM, KSNN
b Dependent Variable: GL Worth R2 adjusted (Adjusted R2) = 0.560 Parameter adjusted R-squared indicates the level (%) of the variation of the dependent variable explained by the independent variable In this case, we can say the variation of the dependent variable (frauds financial statements) due by the independent variables is 56% Also, coefficient = 1.972 Durbin -Watson nearly 2 shows no autocorrelation phenomena
The relevance of the model
The objective of this testing is to examine whether there is a linear relationship between the variables independent and the dependent variable or not Model is considered as inappropriate one when all the regression coefficients are zero, and the model is considered as appropriate one when at least one regression coefficients is non-zero Analysis of variance (Analysis of Variance - ANOVA) was used to test the relevance of the model If the level of significance
to ensure reliability at least 95% (Sig <0.05), the model is considered relevant (Nguyen Dinh Tho, 2013), (Dinh Phi Ho, 2014)
Model Sum of Squares Df Mean Square F Sig
a Dependent Variable:: GL
Trang 9b Predictors: (Constant), CN, HĐQT, ĐĐ, KIỂM TOÁN VIÊNM, KSNB,
CM, MT, AL, NN, KTĐL, NT, TC, PL, QM, KSNN
ANOVA analysis showed that parameters F, Sig = 0.000, indicating that the
regression model is suitable for the construction of the data collected, and the
variables included are significant statistically with a significance level of 5%
Results of regression analysis of factors affecting the fraudulent
behavior of the financial statements company listed securities market on VN
Coefflcients a
Variables
Yet standardized
coefficient
standardized coefficient
t Sig
Correlations
B Standard
Zero -oder Partial Part Tolerance VIF
1
TC ,038 ,012 ,108 3,169 ,002 ,335 ,145 ,096 ,781 1,280
AL ,038 ,011 ,112 3,352 ,001 ,357 ,153 ,101 ,813 1,229
MT ,035 ,011 ,106 3,207 ,001 ,304 ,146 ,097 ,830 1,205
NN ,034 ,011 ,100 2,959 ,003 ,292 ,135 ,089 ,798 1,253
QM ,025 ,015 ,063 1,736 ,083 ,270 ,080 ,052 ,691 1,447
HĐQT -,058 ,014 -,147 -4,213 ,000 -,383 -,191 -,127 ,745 1,341
PL ,046 ,012 ,136 3,877 ,000 ,401 ,176 ,117 ,736 1,359
KTĐL -,040 ,012 -,118 -3,271 ,001 -,374 -,149 -,099 ,693 1,442
KSNN -,071 ,013 -,205 -5,473 ,000 -,465 -,245 -,165 ,651 1,537
ĐĐ ,055 ,012 ,156 4,713 ,000 ,305 ,213 ,142 ,826 1,210
CM -,046 ,012 -,125 -3,916 ,000 -,222 -,178 -,118 ,894 1,119
NT ,053 ,014 ,126 3,752 ,000 ,322 ,171 ,113 ,811 1,234
CN ,046 ,014 ,114 3,376 ,001 ,375 ,154 ,102 ,794 1,259
a Dependent Variable: GL
Source: analysis of results from the software SPSS
The regression coefficients of the model and the level of significance p-value is the
most important parameter for us to draw conclusions about the relationship between
variables in multivariate regression models
Regression:
GL = 2.682 + 0.038TC + 0.038AL + 0.035MT + 0.034NN - 0.058HĐQT +0.046PL
- 0.040KTĐL - 0.071KSNN + 0.055ĐĐ - 0.046CM +0.053NT +0.046CN + ei
18 The author conducted a test to assess the factors affecting fraudulent behaviors of financial statements of the listed companies in stock market of Vietnam through assessing the significance of the regression coefficients βi pair assumptions:
H0: βi = 0 H1: βi ≠ 0 Inspection results showed the significance of regression coefficient of 3 groups of factors Thus, the hypothesis h0 is rejected while the hypothesis h1 is accepted This means that factors of motivation / pressure and factors of opportunities and attitude really impact fraudulent behaviors of financial statements of listed companies in Vietnam stock market As follows:
4.1 As can seen in the table, there are 12 variables have a statistically significant impact on fraudulent behavior of the financial statements of companies listed in Vietnam securities market Of which, 8 independent variables have a positive relationship with the dependent variable it was the 3 elements of the factors of motivation/ pressure, namely the financial stability, the pressure from third party and financial goals, which their betas show that higher and higher pressures from such factors are, higher and higher the likelihood of such fraudulent behavior are The following 3 factors of attitude also have a positive relationship with fraudulent behaviors of financial statements and statistically significant, which shows more and more the violation of the attitude of the directors become, higher and higher the likelihood of such frauds are Finally, the two factors of opportunities also have positive relationships with fraudulent behavior of financial statements, namely characteristics of financial statements and professional activities of the listed companies, legal environment
The remaining 4 independent variables are related inversely to the dependent variable It is factor of independent audit with beta = -0118 and statistical significance at 0.001 = <0.05 This shows that the listed companies which used audit services from the BIG4 company is less fraudulent behaviors of financial statements than ones not using audit services of the BIG4 company The factor of state control for financial statements has the beta = -0205 with statistical significance = 0.000 <0.05, which shows that higher and higher the impact of this factor become, higher and higher the likelihood of fraudulent behaviors of
Trang 1019 financial statements become The factor of characteristic of the board of directors
and their professional qualifications also negatively correlated to the level of
fraud financial statements, which shows that higher and higher the impact of
these factors is, less and less the likelihood of such frauds become
CHAPTER 5 DISCUSSION OF FINDINGS AND RECOMMENDATIONS
5.1 Discuss research results on factors affecting fraudulent behaviors of
financial statements of companies listed in Vietnam's stock market
5.1.1 Factors of motivation/ pressure
Factors of motivation/ pressure have the variables with positive impact to the
fraudulent behavior of the financial statements of company listed in Vietnam
securities market In particular, the pressure on the board of directors to achieve
the financial goals of the company executives laid out; pressure from the
completion of procedures required for listed in the equity market; losses from
business activities that lead to the ability of bankrupt or delist on equity
market; margins or expectations of third parties, the unrealistic optimist of board
of directors about the information in the annual report, have created the
motivations of making frauds in financial statements of such companies
This is explained by the characteristics of the stock market in Vietnam where
still has many shortcomings, risks and mostly short-term investments who only
interested in the company with rapid profitability and lack of organizations of
market making Moreover, many investors in Vietnam lack the necessary basic of
knowledge, lack of analysis and prediction, who often invested through emotional
factors and affected by sentiment According to research by the authors, Nguyen
Hong Vietnam Thanh et al (2013) about the psychology of Vietnamese investors
"investors in Vietnam with investment sentiment pack, psychological investment
in movement, lack of knowledge, lack of own expectations." Due to the lack of
professionalism and lack of knowledge, most investors sometimes just interested
in companies with high profits, this makes the listed companies face pressures to
maintain high profit margins and stable to retain or attract new investors With
such features, it is clear both listed companies and the investor will need to have
sustainable solutions to jointly build a true modern and efficient stock market
20
On the other hand, the situation of stock market Vietnam today, the listed companies have raised capital mainly from banks The stock market should be improved step by step to build a strong market, so the pressure in the contradictions of the agency relationship between the creditor - managers (business) will decrease, managers will limit violations binding contract and which could impact positively on the provision of information to publish honest figures and reasonable for the user information Typically, when evaluating a listed company, investors are mainly interested in the profitability of the shares or the information on the business results in the financial statements (Charfeddine, Riahi and Omri, 2013) so if listed companies operate inefficiently, the stock price fell, hereby it would be difficult to attract investors Therefore, to maintain financial stability and achieve the financial goals, the listed companies in stock market of Vietnam will attempt to make fraudulent behaviors of financial statements Thus, investors should be more cautious in the assessment of business performance of listed companies through financial statements to provide the most accurate investment
5.1.2 The factors of attitude
The second factor with common impacts to frauds in setting financial statements is the of factors attitude (board of directors deliberately intervene in accounting policy to edit data and the excessive attention of directors to maintain and increase the price of shares, directors have moral weaknesses, limiting auditors to work with employees and providing information to the board of directors of the company about frauds in financial statements) Based on the results of multivariate regression analysis showed that:
Factor of "Standards of profession and ethics of the board of directors" (DD) has positive relationship with fraudulent behavior of financial statements of the listed companies in stock market of Vietnam, with coefficient = 0.156 p-value
= 0.000 and <0.05 This means that higher and higher companies listed in Vietnam securities market have breach of profession and ethics standards, higher and higher the likelihood of fraud financial statements become
Factor of "qualification and profession of the board of directors" (CM) is related inversely to the fraudulent behavior of financial statements of such companies, coefficient = - 0.125 and p-value = 0.000 and <0.05 This means that