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Characteristics Of Non-Financial Enterprises On The Vietnamese Stock Market With K Snb


This study applied the design, survey research. Survey research design is a process of collecting information from a sample of people who have been selected to represent a defined target audience. In survey research design, a researcher collects information to describe, explore and quantify social phenomena, especially the problems, conditions and issues prevalent in society at a specific point in time Mugenda et al. (2012); Cooper & Schindler (2011). The study collected information related to the SNB system and the HQH DKD in the listed companies on the Vietnam Stock Exchange. The variables tested include: MTKS, DGRR, DHKS, GS, TTTT, HQH DKD and Government policy.

In the scope of this study, the sample size is focused on listed companies on the Vietnam Stock Exchange. According to https://www.hnx.vn/ and https://www.hsx.vn/ as of December 2021, statistics by industry show the number of listed companies on the Vietnam Stock Exchange is 672 enterprises.

The total number of listed companies on both HNX and HOSE is 731. Based on the characteristics of the identified survey subjects, the number of survey samples is determined by the stratified method to select elements belonging to highly homogeneous groups according to the survey subjects mentioned above. It is expected that each author will send at least 02 survey forms. From observing other researches, the collected survey forms are expected to reach >=25%, the rate of unqualified survey forms is 10%. Therefore, the number of collected samples will reach about 597 samples.

The survey questionnaire was sent to managers in the enterprise including: Chairman of the Board of Directors, Director/CEO, Head/Deputy Head of Departments, Chief Accountant, Accountant/Auditor.

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Based on the influencing factors that have been researched in the previous stage, the quantitative survey questionnaire was deployed to the identified survey subjects in the following forms: (1) Directly, (2) Sending mail, (3) Sending via email/gmail, (4) Via Google docs, (5) other. In which, focusing on the two main trading floors HNX and HOSE.

The structure of the survey subjects is presented in detail in Appendix 3.11.

3.4. Data processing method

- Descriptive statistical analysis

The author uses the following indicators for analysis: Mean, Median, Max and Min of the variables.


NC. To measure the variability of data, the author uses the standard deviation (SD) value. Descriptive statistical analysis aims to collect information about the nature of NC data according to specific variables, the central tendency of NC data.

- Scale quality control

Cronbach's coefficient to test the quality of the scale. The scale is considered to be of good quality when: (i) Cronbach's Alpha coefficient of the total > 0.6; and (ii) Corrected Item – Total Correlations coefficient of the observed variables (Corrected Item – Total Correlations) > 0.3 (Numally & Burnstein, 1994).

- Conduct exploratory factor analysis EFA

EFA analysis will be used for the next analysis. “Factor loading coefficient” is used to measure the significance level of the EFA coefficient. According to Hair et al. (1998): “This coefficient is greater than 0.3 is considered the minimum level, greater than 0.4 is considered important, greater than 0.5 is considered practically meaningful”. In this research, in order to improve the practicality and reliability of the research results, the thesis only selects factors with loading coefficient > 0.5. The Kaiser-MayerOlkin (KMO) coefficient ensures the value of 0.5 <= KMO <=1 and the total variance extracted is greater than 0.5 when performing EFA analysis. Principal Component Analysis method and Varimax rotation are used to extract the main factors.

The results of the subsequent EFA analysis suggest a NC model and the factors are extracted into main factor groups and coded according to independent or dependent variables. To estimate the correlation level of the factors to the HQ H DKD, the author uses the multiple regression analysis model to calculate the parameters of the factors used in the model.

- Regression analysis (Smart-PLS): Structural model specifies the relationship between latent variables. Smart PLS is used to test the hypotheses of the study.


Chapter 3 Conclusion

In Chapter 3, the author presented the research process and the scales of SNB and business performance as well as the impact of SNB on business performance. The author used a combination of qualitative and quantitative research methods to identify and test the SNB factors affecting the business performance of listed companies on the Vietnam Stock Exchange. To process data and analyze results, the author used SPSS 22 and Smart PLS to test the relationship between factors and the results of the model.


CHAPTER 4: RESEARCH RESULTS


4.1. Characteristics of non-financial enterprises NY on the Vietnamese stock market with K SNB

4.1.1. Overview of Vietnam Stock Market

The stock market in Vietnam is a relatively young market in the context of restructuring. Since 1996, the State Securities Commission has been newly established (according to Decree No. 75/CP of the Government), which is an agency under the Government performing the functions of supervision and state management of securities and the stock market. Later, the Government issued Decree No. 66/2004/ND-CP transferring the State Securities Commission under the Ministry of Finance. On July 10, 1998, the Prime Minister issued Decree No. 48/1998/ND-CP on securities and the stock market and decided to establish two Securities Trading Centers in Hanoi and Ho Chi Minh City. The Securities Trading Centers in Ho Chi Minh City and Hanoi were officially opened in 2000 and 2005 with several stock codes. These two stock exchange centers were later transformed into Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) in 2007 and 2009. With such a history, the Vietnamese stock market is considered young, in the process of gradually perfecting its organization, operations and legal environment.

After many years of operation, the formation and development of Vietnam's stock market can be divided into two main stages as follows:

+ Phase 1: From 2000 to 2005 was the initial stage of formation and development of the Vietnamese stock market with a small number of listed companies and a low demand for financial statement audits of listed companies. The listed companies in this stage were regulated by Decree No. 48/1998/ND-CP of the Government on the stock market, which only stipulated that the financial statements of enterprises applying for a license to issue securities to the public must be audited by an approved independent audit firm. In 2004, the above Decree was replaced by Decree No. 144/2003/ND-CP on the stock market, requiring all enterprises participating in the stock market, including listed companies, to have their financial statements audited annually by an approved audit firm.

+ Phase 2: From 2006 to present, the stock market has developed strongly, the number of listed enterprises has increased. Data from the State Securities Commission over the years shows that, if in 2006


There were only 186 enterprises, but this number increased to about 700 enterprises in 2012 and by the end of 2019 this number remained at about 751 enterprises.

Listed enterprises in Vietnam are public joint stock companies that meet the conditions to list their shares on the Vietnam Stock Exchange. Accordingly, the demand for auditing the financial statements of listed enterprises has increased over the years and investors have also begun to pay attention to financial information in the audit reports of independent auditing companies. Accordingly, the conditions for listed enterprises have been improved and tightened to protect the rights of investors. Decree No. 58/CP on guiding the implementation of the Securities Law has set out the conditions for enterprises to list on the Vietnam Stock Exchange (see Appendix 4.1).

From the perspective of auditors, listed companies on the Vietnamese stock market have their own characteristics of a developing stock market. These characteristics include:

Listed enterprises are joint stock companies that meet the requirements of scale, charter capital, business results, and comply with regulations on information disclosure on the stock market, including those related to audited financial statements. In previous years, due to the impact of the financial and monetary crisis, the business situation of some enterprises deteriorated and they had to cancel their listings. According to statistics from HOSE and HNX, the main reasons for canceling listings are that the enterprises have suffered losses for 3 consecutive years, are suspected by the Board of Directors of their ability to operate continuously, or have not had any transactions in the past 12 months, or have violated the information disclosure agreement. However, there are also many stocks of other enterprises that continue to be listed.

The business of listed companies is multi-industry and complex. As of 2018, listed companies are operating in more than 10 different business lines and each listed company operates in many different business areas. Which industry the company belongs to depends on the revenue in the last 3 years from which business registration of the unit. Therefore, the industry structure of listed companies may change from time to time. This will also cause difficulties for auditing the financial statements of listed companies.

State-owned enterprises are often large in scale and distributed in the form of parent-subsidiary enterprises, joint investment, cross-ownership, with a wide scale across the country, especially enterprises in the financial - banking sector. This causes difficulties in auditing work, including the expertise and human resources of auditing companies to perform well the work of auditing financial statements.

Thus, it can be seen that the development in quantity, scale and business form of listed companies on the Vietnamese stock market has changed a lot in recent years. This development is based on a stock market that is still in the process of completion, so it is inevitable that there will be related shortcomings in listed companies, specifically in the technology.

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Auditing financial statements of listed companies by independent auditing companies. In the following part, the author will present the independent auditing market in Vietnam, where auditing companies are also affected by the stock market and are also directly related to the existence and development of listed companies (see Appendix 4.2).

4.1.2. Overview of non-TC NY enterprises

The listed companies on the Vietnam Stock Exchange are large-scale registered enterprises and account for a large proportion of listed companies.

The industries of the DNPTC include: Agriculture, forestry and fishery, mining and oil and gas, industry, construction, transportation and warehousing, trade and accommodation services, catering, information and communication and other activities, healthcare, professional activities, science and technology, administration and support services, real estate business activities, other activities... With a variety of business forms and different industries, the DNPTC has contributed greatly to the total value of national products and the economic development of Vietnam.

According to the State Securities Commission, data from listed companies as of December 31, 2021, the industrial sector has the largest NY volume of 29.3468% equivalent to 2,778,700,089 shares, followed by the construction sector with a proportion of 16.8846% equivalent to 1,598,712,367 shares. The trade and accommodation and catering services sector accounts for 13.6448% equivalent to 1,291,958,771 shares, ….


Chart 4.1: NY volume in 2021 of NY DNPTCs on HNX floor



Source: author compiled from data https://www.hsx.vn/ and https://www.hnx.vn/

The value of equitization of real estate group accounts for the highest proportion of 36%, followed by essential consumer goods sector accounting for 16%, industry sector accounting for 14%, other sectors accounting for insignificant proportions such as: telecommunications services, health care services, etc.


Source: author compiled from data https://www.hsx.vn/ and https://www.hnx.vn/

Table 4.1 shows that among listed enterprises, the number of enterprises with the listing time from 2005 to 2010 is the highest, with 400 enterprises accounting for 59.52%, followed by 132 enterprises with the listing time from 2011 to 2015, accounting for 19.64%, followed by 111 enterprises with the listing time from 2016 to 2021, accounting for 16.52%, and finally, there are only 29 enterprises with the listing time before 2005, accounting for 4.32%. Enterprises listed on the Ho Chi Minh City Stock Exchange account for 50.3%, and enterprises listed on the HNX account for 49.7%.

Table 4.1: Classification of enterprises by time and NY market


Source: author compiled from data https://www.hsx.vn/ and https://www.hnx.vn/

Enterprises with 10 to 100 employees account for the highest percentage, with 165 enterprises accounting for 24.55%, second is enterprises with 201 to 500 employees with 162 enterprises, accounting for 24.11%, third is enterprises with 1000 employees or more with 139 enterprises, accounting for 20.68%, fourth is enterprises with 101 to 200 employees with 115 enterprises, accounting for 17.11% and enterprises with 501 to 1000 employees are the lowest with only 91 enterprises, accounting for 13.54%.

Table 4.2: Classification of enterprises by number of employees



Source: author compiled from data https://www.hsx.vn/ and https://www.hnx.vn/

Table 4.3 shows that NY DNPTC, in terms of financial statement auditing companies, has 258 enterprises audited by big4, accounting for 38.39% and the number of enterprises audited by non-big4 is 414 enterprises, accounting for a fairly high rate of 61.61%.

Table 4.3: Classification of enterprises by audit quality

Source: author compiled from Cafef.vn

4.1.3. Characteristics of non-TC NY enterprises affecting K SNB

The following characteristics of DNPTC NY on the Vietnamese stock market (DNPTC) have an impact on K SNB as follows:

- Number of shareholders: DNPTC are joint stock companies that are entitled to issue securities when they need to increase capital in two forms: shares and bonds to the public. DNPTC has a larger number of owners (shareholders) than many other types of companies. According to the 2005 Law on Enterprises of Vietnam, DNPTC must have at least 3 shareholders, which can be legal entities or individuals. The number of owners of DNPTC is quite complicated in quantity and changes over time and at different times, so it is very difficult to control;

- Management mechanism: DNPTC's operations are subject to management from many legal systems inside and outside the company. In addition, DNPTC is also subject to very strict control from external organizations.

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