REVIEW
of
FINANCE -
Apr. 2018
45
FACTORS IMPACTINGONTHE QUALITY OF FINANCIAL
REPORT IN SMEs OF GIA LAI PROVINCE
HOANG THI THUY, TRAN THI YEN, MA
– Quy Nhon University*
In Vietnam, there is still a lack of research showing the factors that influence the quality of financial
report information in small and medium enterprises by quantitative method. The paper presents the
factors and measures of impact of each factor on the quality of financial report information in small and
medium enterprises in Gia Lai province. From that, the authors have made some recommendations to
improve the quality of financial report information to meet the needs of users of financial statements in
small and medium sized enterprises in Gia Lai province.
Key words: financial statements, small and medium enterprises, factors
Received: January 4
th
, 2018
Revised: January 22
nd
, 2018
Accepted for publication: January 25
th
, 2018
Set the problem
The quality of financial report information is
widespread across organizations and is one of the
determinants of the survival of organizations in the
knowledge economy today (Pham Quoc Thuan,
2016). In Vietnam in general, Gia Lai province in
particular, small and medium sized enterprises
(SMEs) make up a large proportion of enterprises,
deciding most of the economy, but the quality of
accounting information at these enterprises has
many restrictions. Users of financial accounting
information as well as information makers do
not really pay much attention to the quality of
information presented in the financial report,
which is a barrier for enterprises to access capital
from the group credit , from which to improve the
quality and efficiency of production and business
activities. Therefore, the study to identify and
quantify the impact of each factor on the quality
of financial report information in SMEs in Gia Lai
province is an important and urgent topic.
Overview of research issues,
theoretical foundations and research methods
Overview of research issues
Foreign studies such as Jouini Fathi (2013)
show the positive relationship between the
quality of accounting information and the factors
such as the size of the board, the attendance rate
of the members at the board meeting, type of
auditing company, status of listing. Or Ahmad
Al-Hiyari & ctg (2013), who has built a model
of factors affecting the quality of accounting
information, the results of regression analysis
showed that the importance of the relationship
between factors, human resources, the quality of
accounting information systems and the quality
of accounting information.
With national research topics, Vo Van Nhi
and Tran Thi Thanh Hai (2013), the authors
identified specific factors affecting the quality
of financial statements of SMEs in Vietnam.
Including a regulatory framework for accounting
for SMEs; Information users and information
needs; Organizational management; Accountant.
Pham Quoc Tuan (2016) also identified factors that
affect the quality of financial report information at
enterprises in Vietnam and provide solutions to
improve the quality of financial report information.
By synthesizing research carried out in the
world and in Vietnam related to research, it’s easy
to realize that most of the research is concentrated
in listing companies, large enterprises. So far, we
find that there are still no studies showing the
factors influencing the quality of financial report
information in SMEs by quantitativemethod. from
that, the author proposed solutions to improve the
quality of financial report information in SMEs in
Vietnam in general and the province of Gia Lai in
particular.
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