Ranking the Level of Impact of Factors on Financial Statements

4.2.6. Correlation coefficient test

Data from Table 4.21 shows that the simple correlation of the factors NV; KT; KS; UB; AC has a positive relationship with CLTT on the financial statements. The observed significance level of the above factors is less than 0.05 and has linear correlation coefficients of 0.802; 0.649; 0.470; 0.445; 0.654; 0.681, respectively, showing the level of mutual influence between the factors at a fairly good level and with practical significance. From the results of the correlation analysis, the conditions are sufficient to include the variables in the regression analysis.

Table 4.21. Correlation coefficient diagram of factors

Variable

NV	KT	HQ	KS	UB	AC	CLBCTC
NV	Correlation coefficient r	1	,620 **	,451 **	,366 **	,566 **	,703 **	,802 **
NV	Significance level		,000	,000	,000	,000	,000	,000
KT	Correlation coefficient r		1	,452 **	,229 **	,665 **	,626 **	,649 **
KT	Significance level			,000	,000	,000	,000	,000
HQ	Correlation coefficient r			1	,219 **	,396 **	,502 **	,470 **
HQ	Significance level				,000	,000	,000	,000
KS	Correlation coefficient r				1	,325 **	,330 **	,445 **
KS	Significance level					,000	,000	,000
UB	Correlation coefficient r					1	,512 **	,654 **
UB	Significance level						,000	,000
AC	Correlation coefficient r						1	,681 **
AC	Significance level							,000
Financial Statements	Correlation coefficient r							1
Financial Statements	Significance level
**. p<0.05 (2-tailed).

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Source: Thesis research

4.2.7. Linear regression model analysis

The results of the correlation coefficient show that the six independent variables have a linear relationship with the dependent variable. The author checks the suitability of the model by checking the assumption of normal distribution of the residuals. The linear regression model must satisfy the condition that the residuals must follow a normal distribution. The results of the frequency chart of the residuals are shown in the following chart 4.1:

Figure 4.1. Normalized residual frequency Histogram

Source: Thesis research

The distribution has a balanced bell shape with the peak falling at point 0. At the same time, the mean point is close to 0 and the standard deviation coefficient is small 0.991 < 1, so the data is highly concentrated. In other words, the residual distribution is approximately normal, so it can be concluded that the assumption of normal distribution of the residuals is not violated.

Check for multicollinearity

Multicollinearity is a phenomenon in which independent variables are closely correlated with each other, then the regression model will be violated. Check for multicollinearity through the variance inflation factor (VIF). If VIF > 10, multicollinearity may occur.

Table 4.22. Multicollinearity test results

Model

Unstandardized Beta		Standardized Beta	t	Sig.	Multicollinearity statistics
B	Std. Error	Beta	t	Sig.	Acceptability	Variance Inflation Factor (VIF)
1	(Constant)	3,364	,021		163,793	,000
	NV	,359	,033	,476	10,883	,000	,406	2,462
	KT	,093	,033	,123	2,823	,005	,411	2,433
	HQ	,032	,025	-,042	1,269	,082	,704	1,421
	AC	,066	,034	,086	1,949	,050	,399	2,507
	KS	,120	,023	,159	5,096	,000	,802	1,247
	UB	,136	,031	,176	4,410	,000	,486	2,056
R=0.857; R 2 = 0.734; Adjusted R 2 = 0.729; F = 157.531; Sig = 0.000

Source: Thesis research

Multicollinearity test: Tolerance coefficients <1 and VIF coefficients <3 show that the independent variables do not have multicollinearity.

Regression analysis results

After many times of processing the regression model using different methods, the author chose the Enter method (putting all variables into the regression equation) to get the best regression model results as follows: The author used a multivariate regression model with the following form:

CLTT of financial statements = bο + b1* NV + b2*KT + b3* HQ + b4* AC + b5* KS + b6* UB + ε

In there:

CLTT BCTC: Information quality on financial statements of listed companies on Vietnam stock exchange. Staff: Accountant

KT: Independent audit quality; HQ: Corporate governance behavior;

AC: Applying International Financial Reporting Standards.

KS: Effectiveness of internal control

UB: Regulatory role of the State Securities Commission

b1-b6: Corresponding influence coefficients of independent variables on CLTT on financial statements.

Model fit testing

Table 4.23. Model summary

Model

R value	R squared	Adjusted R squared	Standard error of estimate
1	, 857a	,734	,729	,38419

a. Predictors: (Constant), UB, KS, HQ, AC, KT, NV

Source: Thesis research

Table 4.24. ANOVA table a

Model

Sum of squares	Df	Average of squares	F	Sig.
Regression	139,515	6	23,252	157,531	,000 b
1 Remainder	50,629	343	,148
Total	190,143	349

a. Dependent Variable: CLTTBCTC

b. Predictors: (Constant), UB, KS, HQ, AC, KT, NV

Source: Thesis research

The results of the analysis of variance show that the total variation of the observed dependent variable is divided into two parts: the variation due to regression and the variation due to residuals. The results of the ANOVA analysis show that the sum of squares of the residuals is 50.629 and the sum of the squares of the regression is 139.515 and their sum, called the sum of the total squares, is 190.143. From there, the result of the square deviation of the regression is 139.515/6=23.252 and that of the residual is 50.629/343 = 0.148.

From the above results, we have the result of F = 157.531/0.148 = 157.531. Based on the distribution table according to the statistical quantity F used to test the suitability of the model with the observed data, we have the value of F = 157.531 corresponding to the observed significance level < 0.0000. Thus, the p-value of the F test is very small, we can conclude that: There is a linear relationship between CLTT on the financial statements and at least one of the following factors: NV: Accounting staff; KT: Independent audit quality; HQ: Profit management behavior; AC: Application of international financial reporting standards, KS: Effectiveness of internal control, UB: Regulatory role of the State Securities Commission (or all factors). Thus, the analyzed model is consistent with the observed data and can be generalized to the whole.

Table 4.25. Regression weights (Coefficients a )

Model

Coefficient B	unprocessed eta	standard	Standardized Beta	t	Sig.
B	Std. Error		Beta	t	Sig.
Blocking factor	3,364	,021			163,793	,000
NV	,359	,033		,476	10,883	,000
KT	,093	,033		,123	2,823	,005
HQ	,032	,025		-,042	1,269	,082
AC	,066	,034		,086	1,949	,050
KS	,120	,023		,159	5,096	,000
UB	,136	,031		,176	4,410	,000

a. Dependent Variable: CLBCTC

Linear regression equation:

Source: Thesis research

CLTTBCTC = bο + b1* NV + b2*KT + b3* HQ + b4* AC + b5* KS + b6* UB + ε

Through the results of linear regression analysis, we can see: The factors NV (adjusted β = 0.476, p = 0.000), KT (adjusted β = 0.123, p = 0.005), AC (adjusted β = 0.086, p = 0.50), KS (adjusted β = 0.159, p = 0.000), UB (adjusted β = 0.176, p = 0.000) have a positive relationship with liquidity on the financial statements of listed companies on the Vietnamese stock market and are statistically significant at the 5% level, HQ (adjusted β = - 0.042, p = 0.082) has a negative relationship and is statistically significant at the 10% level with liquidity on the financial statements of listed companies on the Vietnamese stock market.

Therefore accept the following hypotheses:

H1: The capacity and professional ethics of accounting staff have a positive impact on the quality of information on the financial statements of listed companies on the Vietnamese stock market.

H2: Good internal control effectiveness positively affects the information disclosure on financial statements of listed companies on the Vietnam stock exchange.

H3: Applying international financial reporting standards has a positive impact on information quality on financial statements of listed companies on the Vietnamese stock market.

H5: Independent audit quality positively affects the information quality on post-audited financial statements of listed companies on the Vietnam Stock Exchange.

H6: The regulatory role of the State Securities Commission has a positive impact on the liquidity of financial statements of listed companies on the Vietnamese stock market.

With adjusted β = - 0.042, p=0.082, there is an impact on the information quality on the financial statements. Therefore, accept hypothesis H4: Earnings management behavior has a negative impact on the information quality on the financial statements of listed companies on the Vietnam Stock Exchange but at a significance level of 8.2%.

The results of the regression model analysis show an adjusted R2 coefficient of 0.729, indicating that the independent variables are able to explain 72.9% of the dependent variable. Among the influencing factors, the factor of the accounting staff has the strongest influence on the information quality on the financial statements of listed companies on the Vietnam Stock Exchange with an adjusted Beta coefficient of 0.476, followed by the factors of UB, KS, KT and finally AC, illustrated in the table below.

The linear model shows the impact of factors on liquidity on financial statements of listed companies on the Vietnam Stock Exchange:

CLTTBCTC = 3.364 + 0.359* NV + 0.093* KT - 0.032* HQ + 0.066* AC + 0.120* KS + 0.136* UB

Table 4.26. Arrange the level of impact of factors on CLTT on financial statements

STT

Variable symbol	Variable name				Values are discrete variables	Strength and direction of impact
1	Financial Statements	Information quality on financial statements of listed companies on Vietnam Stock Exchange				From 1 to 5	-
2	NV	Accountant				From 1 to 5	1 (Same direction)
3	UB	Regulatory role of the State Securities Commission				From 1 to 5	2 (Same direction)
4	KS	Internal control				From 1 to 5	3 (Same direction)
5	KT	Independent audit quality				From 1 to 5	4 (Same direction)
6	AC	International application	standard	squid	Financial Statements	From 1 to 5	5 (Same direction)
7	HQ	Earnings management behavior				From 1 to 5	6 (Counter)

Source: Thesis research

In this study, there are two factors that are considered to be the specific affirmation of this study, which are the factor of Applying international financial reporting standards and the factor of the regulatory role of the State Securities Commission affecting the information quality on the financial statements of listed companies on the Vietnamese stock market. The author conducted qualitative research and quantitative testing. Among the above independent variables, the factor of QTLN behavior is the factor that has an inverse relationship with the information quality on the financial statements of listed companies on the Vietnamese stock market with a significance level of less than 10%, p = 0.082.

4.2.8. Assessment of financial reporting quality and influencing factors of the reporting group and the reporting user group

The two subjects in the thesis research are the financial statement preparers (the issuers of the financial statements) and the users of the financial statements who have different economic interests in the information on the financial statements, so these two groups of subjects may have different assessments of the information quality on the financial statements of the listed companies on the Vietnamese stock market as well as the influencing factors.

The author used the ANOVA analysis method to analyze, the results are presented in Table 4.27 as follows:

Table 4.27. Results of ANOVA Independent Samples Test analysis

Work group

Quantity

Medium

Standard deviation

F function

Significance level of (F)

Function t

Two-sided significance level of t

R_TB

Financial Statement Preparation Group

243

3,1493

,83165

1,858

,174

-2,416

,016

Financial statement user group

107

3,3576

,73627

F_TB

Financial Statement Preparation Group

243

3,0527

,83299

2,285

,132

-4,180

,000

Financial statement user group

107

3,4276

,81507

U_TB

Financial Statement Preparation Group

243

3,3184

,84064

6,433

,012

-5,767

,000

Financial statement user group

107

3,8583

,87638

C_TB

Financial Statement Preparation Group

243

3.2779

,86328

,000

,988

-2,240

,026

Financial statement user group

107

3,4809

,79061

V_TB

Financial Statement Preparation Group

243

3,3204

,84350

5,501

,020

-4,100

,000

Financial statement user group

107

3,7049

,87688

T_TB

Financial Statement Preparation Group

243

3,4466

,91375

,137

,712

-2,909

,004

Financial statement user group

107

3,7257

,83745

NV_TB

Financial Statement Preparation Group

243

3.5718

.89540

9,337

,002

-3,937

,000

Financial statement user group

107

3,9028

,67616

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