Associations of Board Size, Audit Reputation, and Debt with Financial Restatement: Evidence in Vietnam

DOI

10.2991/aebmr.k.211119.012How to use a DOI?

Keywords

Financial Restatement; Board size; Audit Reputation and Total debt to total assets

Abstract

Research purpose:

The purpose of this study is to look into the contributing factors of the post-audit financial restatement of publicly listed companies in Vietnam. It focuses on the size of the company’s board of directors, the audited firm, and the total debt to total assets ratio, as well as whether or not the financial restatement has an impact.

Research motivation:

Financial restatements reflect quality of financial statements based on which the users make various decisions. It is important to understand the reasons why companies have to restate their financial statements to ensure informed decisions.

Research design, approach and method:

The research uses quantitative method to collect data from annual reports of companies from 2014 to 2020, which is available on Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) and CAFEF websites. After that, the author utilizes the STATA 15.0 tool to analyze the results through descriptive statistics, correlation coefficient, and Logistic Regression.

Main findings:

The findings indicate that the total debt to total assets ratio had a significant relationship to the incidence of financial restatement, whereas board size and audit reputation did not appear to affect the incidence of financial restatement.

Practical/managerial implications:

The research contributes to the understandings of specific factors influencing financial restatement in a the context of Vietnam while also providing useful information for auditors and investors on how to identify inaccurate information on annual reports and make appropriate decisions

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Nguyễn Thị Kim OANH
AU  - Nguyen Van DINH
AU  - Nguyen Cam VAN
PY  - 2021
DA  - 2021/12/07
TI  - Associations of Board Size, Audit Reputation, and Debt with Financial Restatement: Evidence in Vietnam
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 104
EP  - 112
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.012
DO  - 10.2991/aebmr.k.211119.012
ID  - OANH2021
ER  -