The board of directors influence on the information quality of financial reporting through accounting conservatism – Empirical evidence on Vietnamese listed enterprises

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The information quality contained in financial reporting has practical implications for stakeholders. Accounting conservatism is a criterion that affects the authentication of the value of assets and liabilities related to the financial reporting of enterprises. The role of the board of directors is to supervise the information quality of an enterprise. The purpose of the paper is to examine how the board of directors influences the information quality of financial reporting through accounting conservatism. The survey sample includes 100 listed enterprises that have the highest capitalization in Vietnam’s stock market. Time series data taken for the last five years are published by enterprises from 2018 to 2022. The paper implements the quantitative method of ordinary least squares to test the hypotheses. The results explore that board size, board independence, and audit organization affect the information quality of financial reporting through accounting conservatism. Accordingly, board size has the strongest influence, and board independence has the weakest effect on the information quality of financial reporting through accounting conservatism. The research suggests some policies for Vietnamese listed enterprises to have appropriate regulations for the board of directors and strengthen control of the information quality of financial reporting.

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    • Table 1. Descriptive statistics
    • Table 2. Correlation matrix
    • Table 3. Regression
    • Table 4. Variance inflation factor of the variables
    • Table 5. Results of hypotheses
    • Conceptualization
      Dang Anh Tuan, Le Xuan Thuy
    • Data curation
      Dang Anh Tuan, Le Xuan Thuy
    • Formal Analysis
      Dang Anh Tuan, Tran Quoc Thinh, Le Xuan Thuy
    • Investigation
      Dang Anh Tuan, Le Xuan Thuy
    • Methodology
      Dang Anh Tuan, Tran Quoc Thinh, Le Xuan Thuy
    • Resources
      Dang Anh Tuan
    • Software
      Dang Anh Tuan, Le Xuan Thuy
    • Validation
      Dang Anh Tuan, Le Xuan Thuy
    • Visualization
      Dang Anh Tuan, Le Xuan Thuy
    • Writing – original draft
      Dang Anh Tuan, Tran Quoc Thinh, Le Xuan Thuy
    • Project administration
      Tran Quoc Thinh
    • Supervision
      Tran Quoc Thinh
    • Writing – review & editing
      Tran Quoc Thinh