Summary of the dissertation: Measuring the level of non-financial information disclosure and factors affecting the level of non-financial information disclosure of companies listed on the stock exchange in Vietnam

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
--------------

DUONG HOANG NGOC KHUE

MEASURING THE LEVEL OF NON-FINANCIAL
INFORMATION DISCLOSURE AND FACTORS AFFECTING
THE LEVEL OF NON-FINANCIAL INFORMATION
DISCLOSURE OF COMPANIES LISTED ON THE STOCK
EXCHANGE IN VIETNAM

Major: Accounting
Code: 9340301

SUMMARY OF THE DISSERTATION

HO CHI MINH CITY – 2019


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The dissertation is prepared at:
University of Economics Ho Chi Minh City

Professional advisor:

Asso.Prof., PhD Ha Xuan Thach

Critic 1:
Critic 2:
Critic 3:

The thesis will be presented to the Thesis committee at
University of Economics Ho Chi Minh City on

at


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INTRODUCTION
1. Research ideal
Accounting information includes financial and nonfinancial information. We
do not deny the significant role of financial information of companies in the investors’
decision making. However, in a developing society, the intense production of
enterprises leads to negative environmental impacts, labour exploitation to maximize
profit, regardless of adverse effects on the development of sustainable economy.
Therefore, since the 1990s, organizations created the concept of sustainable
development, thus the awareness of companies and stakeholders has improved in
terms of not only financial information but also nonfinancial information, which
includes information about environment, society, corporate governance, and other
nonfinancial information, changed from encouraging voluntary disclosure to
mandatory disclosure some types of nonfinancial information such as social and
environmental information. For example, when starting a project, besides providing
financial information like financial position, cash flow, payback period, profit, etc.,
companies must also disclose nonfinancial information of the project to stakeholders
such as its negative impacts on the environment, solutions for the pollution,
remuneration policy and unemployment resolutions for the local workforce. Only this

way, companies will provide overall and sufficient information to investors so that
they can make economic decisions.
Investors, especially international ones, are paying much attention to
nonfinancial information to have an insight in the value, prestige, and sustainability of
businesses. If companies do not attempt to lessen their negative impacts on the
environment and society, they will not be possible to get and retain professional
investors. Besides analyzing traditional financial indicators to make business
decisions, investors also analyze nonfinancial factors including environment, society
and corporate governance information for the decision making of investors.
Nonfinancial information disclosure has been applied for a long time in
developed nations worldwide in several forms with the guidelines like the Global
Reporting Initiative (GRI), a framework of the Carbon Disclosure Project, or other
guidelines. Nonfinancial information, which plays an important role in accounting
information system, has the potential to add significant value (Fraser, 2012), the
nonfinancial information disclosure makes companies develop more sustainably,
enable the value of enterprises to be recognized by the society and enhance the
competitiveness of companies worldwide.
In Vietnam, companies mostly pay attention to financial information, and some
types of nonfinancial information which present in the notes of financial statements
are used to explain and support for financial information, not the nonfinancial
information about the environment, society, etc. However, some companies listed on
the stock exchange are aware of the important role of nonfinancial information
disclosure according to international standards like the G4 guideline of Global
Initiative Organization (GRI4) such as Vinamilk joint stock company, Hau Giang
pharmaceutical joint stock company, Imexpharm pharmaceutical joint stock


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company… As a results, these companies are greatly trusted by both national and

international investors and their value is internationally recognized.
Vietnam has been a member of many organizations worldwide like WTO,
AFTA, AEC…, so there is a greater need for economic integration to attract foreign
investors. Moreover, when sustainable development are becoming more and more
competitive, Vietnamese accounting reports also need to disclose mandatory
nonfinancial information, especially social and environmental information, etc.
Therefore, in the year 2015, the Ministry of Finance issued Circular No.
155/2015/TT-BTC regarding information disclosure on securities market. The circular
155 requires listed companies to report on their impacts on the environment and
society. After a year of the implementation, companies which disclose nonfinancial
information according to the G4 guideline apply easily the circular 155/BTC. While
the others apply the circular 115/BTC inadequately and eliminate some indexes due to
the lack of information about gathering, processing and disclosing.
As a result, research on nonfinancial information disclosure are gaining more
attention. Around the world, there are several research on the level of nonfinancial
information disclosure and factors affecting this level, like Mobus (2005), Levine and
Smith (2011), Babaloo (2012), Skouloudis and et al (2013), Behbahani and et ah
(2013a, 2013b), Karim and et al (2013), Ioannou và Sarefeim (2014), Khan and et al
(2014), Ghasempour Grewal and et al (2015), Christensen and et al (2015), Kaya
(2016), Mihajlov and Spasic (2016), Rezaee và Tuo (2017), Manes-Rossi and et al
(2018), Gulin and et al (2018), Sierra-Garcia and et al (2018), Szadziewska and et al
(2018)… Nonetheless, in Vietnam, the kind of the research topic only has some
studies such as the research of Ta Quang Binh (2012, 2014), Pham Duc Hieu and Do
Thi Huong Lan (2015). Therefore, it is necessary to choose the topic “Measuring the
level of nonfinancial information disclosure and factors affecting the level of
nonfinancial information of companies listed on the stock exchange in Vietnam” as
the research topic for the dissertation.
2. Research objectives and questions
2.1 Research objectives
The dissertation is designed to achieve the following specific objectives:

+ Firstly, measuring the level of non-financial information disclosure of
companies listed on the Vietnamese stock exchange in accordance with Vietnamese
regulations, and according to GRI4 regulations of the internation.
+ Secondly, identifying the factors and measuring the impact of each factor on
the level of non-financial information disclosure of companies listed on the
Vietnamese stock exchange.
2.2 Research questions
3. Research Methodology
The author uses mixture of qualitative and quantitative methods in the dissertation.
The research process of the dissertation as below:


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General Research Objectives
Measuring the level of non-financial information disclosure of companies listed
on the Vietnamese stock exchange in accordance with Vietnamese and
international regulations. And study on the factors affecting the level of nonfinancial information disclosure.

The first specific objective: Measuring the
level of non-financial information disclosure of

The second specific objective: identifying the
factors and measuring the impact of each factor on
the level of non-financial information disclosure of
companies listed on the Vietnamese stock exchange.

companies listed on the Vietnamese stock exchange
in accordance with Vietnamese and GRI4
regulations

Qualitative research
(Expert method)

Identifying factors for the research
model.

Quantitative Method

Unweighted index method
Descriptive statistics method

Results

(Answer the
second research
question)

Results
The level of non-financial information disclosure
in accordance with Vietnamese and GRI4
regulations (Answer the first research question)

Using results
of the first
research
objective

Regression method
Descriptive statistics method

Identifying the factors and measuring the
impact of each factor on the level of nonfinancial information disclosure (Answer the
second research question)

Using results of the first
research objective

Using results of the
second research objective

Discussion and policy implications to enhance the level of non-financial
information disclosure of listed companies in Vietnam

Figure 1: Research framework of the dissertation.
4. Research subjects and scopes
Reseach subjects: Non-financial Information.


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Research Scopes: Companies are listed officially on the stock exchange in
Vietnam; Data of non-financial information was collected in annual report 2016 and
sustainability report 2016; Studying listed companies had an accounting year from
January 1st to December 31th each year.
Research limitations: Do not study financial companies because they disclosed
non-financial information differently from manufacturing companies; The dissertation
does not study the quality of non-financial information disclosure; The dissertation
does not study companies listed after January 1st, 2016 because they disclosed nonfinancial information inadequately.
5. New contributions:

The new academic and theoretical contributions: The dissertation has
verified and added the scoring method of non-financial information disclosure in
Vietnam. The dissertation has exposed a new factor which named foreigner loans
impacts the level of non-financial information disclosure. The dissertation measures
the factors affecting the level of non-financial disclosure of the companies listed on
the Stock Exchange in Vietnam.
New implications from the research results:
The dissertation has measured the level of non-financial information disclosure
of the companies listed in Vietnam according to the regulations in Vietnam and
according to G4 guidelines of the Global Reporting Initiative. The dissertation has
evaluated the level of non-financial information disclosure according to Vietnamese
regulations of listed companies what extent against international standards. The
dissertation proposed policy implications for state management agencies and implies
corporate governance from the research results of the dissertation as follow:
+ For listed companies, the dissertation proposals corporate governance
policies ralated to factors affecting to the companies in order to more advantage in the
information disclosure more transparent.
+ For state management agencies, implies reviewing non-financial disclosure
documents and policies, specifically circular 155/BTC should be adjusted to suit the
reality.
+ For professional organizations such as the VAA, VACPA, academic
researchers specializing in accounting, the dissertation is one of an elaborate, rigorous
studying materials, it is used to compare with the other teaching about non-financial
information disclosure and the factors that affect the level of non-financial disclosure.
6. Structure of the dissertation:
The dissertation is divided into five chapters:
Chapter 1: Literature Review.
Chapter 2: Theoritical Framework.
Chapter 3: Research Method, Findings and Discussion on measuring the level of
non-financial information disclosure.

Chapter 4: Research Method, Findings and Discussion on identifying and
measuring factors impact to the level of non-financial information disclosure.
Chapter 5: Conclusion and Recommendation.


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CHAPTER 1
LITERATURE REVIEW
1.1

Researches on the mandatory disclosure of non-financial information
The characteristics of this research line are the measurement of the level of
mandatory non-financial information disclosure. The researchers used the unweighted
index method to measure the level of mandatory non-financial information disclosure.
The disclosure indices of a company were prepared base on the national regulations
system. In this research line, authors used statistical methods to describe the results of
the forced publication of non-financial information relative to regulations, thereby
assessing the compliance level of non-financial information disclosures of companies
in the research sample.
1.1.1 Researches on the mandatory disclosure of non-financial information in
the world
With the research direction of mandatory disclosure of non-financial
information, there have been a lot of researches, such as Mobus (2005), Levine and
Smith (2011), BaBaLoo (2012), Ioannou and Serafeim (2014), Grewal et al. (2015),
Christensen et al. (2015) and Kaya (2016), Manes-Rossi and et al (2018), Gulin and et
al (2018), Sierra-Garcia and et al (2018), Szadziewska and et al (2018).
1.1.2 Researches on the mandatory disclosure of non-financial information in
Vietnam
In Vietnam, the author has not found a separate study on mandatory disclosure of nonfinancial information yet.

1.2 Researches on the voluntary disclosure of non-financial information
The characteristics of this research line are non-financial information that has been
studied extensively. The researchers used the unweighted or weighted index method to
measure the level of voluntary disclosure of non-financial information. Some
researchers used the content analysis method. After that, they used the descriptive
statistical method to measure the level of voluntary disclosure. Each author divided
the degree of disclosure by intervals, without template, to evaluate the level of nonfinancial information disclosure of the companies in the research sample.
1.2.1 Researches on the voluntary disclosure of non-financial information in the
world
With the second research line of voluntary disclosure of non-financial information,
there are some authors such as Karim et al. (2013), Khan et al. (2014), Ghasempour
and Yusof (2014), Mihajlov and Spasic (2016), Rezaee and Tuo (2017).
1.2.2 Researches on voluntary disclosure of non-financial information in
Vietnam
In Vietnam, the second line of voluntary disclosure of non-financial
information is relatively modest, with some authors such as Ta Quang Binh (2012), Ta
Quang Binh (2014), Pham Duc Hieu and Do Thi Huong Lan (2015).
1.3 Researches related to factors affecting the level of non-financial
information disclosure
With the third research line on factors affecting non-financial information,
regardless of mandatory or voluntary disclosure, conducted by Meek et al. (1995),
Robb et al. (2001), Skouloudis et al. (2013), Karim et al. (2013), Arif and Tuhin


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(2013), Behbahani et al. (2013a, 2013b), Zare et al. (2013), Mohammed and Islam
(2014), Ghasempour and Yusof (2014), Ta Quang Binh (2014), Pham Duc Hieu and
Do Thi Lan Huong (2015), Rezaee and Tuo (2017), Sierra-Garcia and et al (2018),
Szadziewska and et al (2018).

1.3.1 Researches related to factors affecting the level of non-financial disclosure
in the world
Meek et al. (1995), Robb et al. (2001), Skouloudis et al. (2013), Karim et al.
(2013), Arif and Tuhin (2013), Behbahani et al. (2013a, 2013b), Zare et al. (2013),
Mohammed and Islam (2014), Ghasempour and Yusof (2014), Rezaee and Tuo
(2017), Sierra-Garcia and et al (2018), Szadziewska and et al (2018).
1.3.2 Researches related to factors affecting the level of non-financial disclosure
in Vietnam
Ta Quang Binh (2014), Pham Duc Hieu and Do Thi Lan Huong (2015).
1.4 Evaluation of previous studies and Determination of the research gap
1.4.1 Evaluation of previous studies
In the world, this is a full-fledged research series, conducted by three research
lines (1) research on the compulsory disclosure level of non-financial information, (2)
research on the voluntary disclosure level of non-financial information, and (3)
research on factors affecting the level disclosure of non-financial information. In
Vietnam, the first research line (1) the mandatory disclosure level of non-financial
information has not been studyed, the second research line (2) the voluntary disclosure
level of non-financial information has been studyed rarely and inadequately. And the
third research line (3) factors affecting the level disclosure of non-financial
information has studyed limitedly and inadequately. Most of the previous studies used
the non-weighted index method to mark non-financial information disclosure and used
statistical methods to measure the level disclosure of non-financial information. In
addition, the studies used a regression method to test the effect of factors on the level
disclosure of non-financial information.
1.4.2 Determination of the research gap
From the above analysis, the author will detect the research gap for author’s
research on non-financial information disclosure as follows:
+ To measure the level of non-financial disclosure of companies listed on the
Vietnamese stock exchange in accordance with Vietnamese regulations, and according
to GRI4 regulations of the world. From that, to evaluate and compare the level of nonfinancial information disclosure of listed companies in accordance to Vietnam

regulation with the world standard.
+ To identify the factors from literature review and to explore new factors that
impact on the level of non-financial information disclosure, and measure the
impactation of each factor on the level of nonfinancial information disclosure of
companies listed in Vietnam.
CONCLUSION FOR CHAPTER 1


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CHAPTER 2
LITERATURE REVIEW
2.1 Overview of Non-financial information
2.1.1 Denifition of non-financial information
Non-financial information is a broad concept that is reflected in the various
definitions of researchers or professional institutions, such as Meek et al.
(1995), Robb et al. (2001), Dominique (2009), Eccles and Krzus (2010), Fraser
(2012), INTOSAI (2013) , European Commission (2013), Forser (2012 ), ICAEW
(2008), Admiraal, Nivra, and Turksema Skouloudis et al. (2013), Financial Times
Lexicon (2015), E&Y (2015). As such, non-financial information is a broad concept,
which may be qualitative or quantitative data, not measured in monetary terms,
depending on the type of report that non-financial information is presented differently.
Therefore, in the dissertation, non-financial information is presented in the annual
reports that includes the general non-financial information about the company,
environment, social, corporate governance, and other non-financial information.
2.1.2 The role of non-financial information
2.1.3 Users of non-financial information
2.1.4 Forms of non-financial disclosure
According to the Association of Chartered Accountants of England and Wales
(ICAEW), non-financial information presented in each report is different, as follows:

Table 2.2 Types of Nonfinancial information in each report
Types of reports
Types of non-financial information
Corporate responsibility
Policy and performance covering the following issues:
reports.
- Environmental,
for
example,
carbon
emissions.
- Social.
- Economic.
- Ethical.
Annual reports.
- Development and performance of business.
- Risks and uncertainties facing the company.
- Environmental, employment, social and
community issues.
- Contractual relationship.
- Corporate governance.
- Internal controls.
- Reserve reporting.
- Research and development pipelines.
Regulatory reporting.
Report to managers on issues: presenting risks, pricing
policies, or demonstrating compliance with legal
requirements.
Detailed data in support of regulatory investigations and
consultations.

Other reports.
Other operational information, for example, customer
satisfaction and quality assurance.
Source: ICAEW, 2008.


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2.2 Guidelines of non-financial information disclosure
2.2.1 Guidelines for non-financial disclosure in the world
2.2.1.1 Under guidelines G4 of the Global Reporting Initiative (GRI4)
2.2.1.2 Under Singapore framework
2.2.2 Guidelines for non-financial disclosure in Vietnam
2.2.2.1 Under the Vietnames Accounting Standards
2.2.2.2 Under guidelines for disclosure on securities market
2.3 Non-financial Information Disclosure Measurement Method
Hassan and Marston (2010) studied the disclosure measurement methods. The
authors examined 40 previous studies on measuring disclosure. The results of the
study show that: (1) The study presented measures of disclosure provided in prior
studies classified into two approaches. The first approach includes proxies for
disclosure, which are not directly based on examining the original disclosure
vehicle(s). The second approach provides measures of disclosure obtained by
inspecting the original disclosure vehicle(s). (2) Frequency of methods used to
measure quantity / quality of information disclosure.
The results of Hassan and Marston (2010) show that some studies can use
two or more proxies for disclosure. Statistical results suggest that the most used
method in disclosure measurement was the disclosure index with rate 32%.
2.4
Theoritical Background
2.4.1 Stakeholder theory

Content theory
Applied theory:
Stakeholder theory is used to explain factors such as industry, financial
leverage and foreigner liabilities which will affect the level of non-financial
information disclosure.
2.4. 2 Asymmetric theory
Content theory
Applied theories
The asymmetric theory is used to explain factors such as company's
profitability, characteristics of CEO which will affect the level of non-financial
information disclosure.
2.4.3 Agency theory
Content theory
Applied theories
Agency theory is used to explain factors such as company size, financial
leverage, auditing firm, company age, foreign ownership, state ownership,
institutional ownership, dual leadership structure which will affect the level of nonfinancial information disclosure.
2.4.4 Signaling theory
Content theory
Applied theories
Signaling theory is used to explain factors such as auditing firm, company’s
liquidity, financial leverage, company's profitability, company age, company's listing
time which will affect the level of non-financial information disclosure.


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2.4.5 Legitimacy theory
Content theory
Applied theories

Legitimacy theory is used to explain factor company's industry which will
affect the level of non-financial information disclosure.
CONCLUSION OF CHAPTER 2
CHAPTER 3
RESEARCH METHODS, FINDINGS AND DISCUSSION ON MEASURING
THE LEVEL OF NON-FINANCIAL INFORMATION DISCLOSURE
3.1. Research design
3.1.1. Appropriate research methodology
3.1.2. Research process
3.1.3 Scoring Methodology of nonfinancial information disclosure
The author has chosen the unweighted index method in order to identify the
disclosure level of nonfinancial information such as prior researches of Behbahani
(2013a, 2013b), Ghasempour and Yusof (2014), Ta Quang Binh (2014), Pham Duc Hieu
and Do Thi Huong Lan (2015), Grewal et al. (2015), Kaya (2016), ... The method
analyses each category using a “1, 0” scoring methodology. If there is information of
subcategories, these subcategories will gain a score of 1, whereas a score of 0 will be
awared if no information subcategory is disclosed. Therefore, the non-financial
information disclosure (NFID) index is calculated according to the following formula:
∑𝑛𝑖=1 𝑑𝑖𝑗
NFIDj
=
𝑛
Where:
+ NFIDj: Total of non-financial informationa disclosure of company j in according
to Vietnamese regulations, and GRI4 regulations.
+ dij = 1 if subcategory is disclosed
+ dij = 0 if no information subcategory is disclosed
+ n: The number of non-financial information items are disclosed.
3.1.4 Research Conduction
3.1.4.1 Research Sample:

The study covers 577 non-financial companies listed on HOSE and HNX. The
sample period in this study is only for the year ending on December 31, 2016
3.1.4.2 Data Collection and Processing
3.2 Findings and discussion
3.2.1 Findings
3.2.1.1 Measuring the level of non-financial disclosure according to Vietnamese
regulations
From the descriptive statistics result, the mean value of non-financial information
disclosure index is 35.67 items (total 61 items), approximately 58.5%, it belongs to the
average level. whereas the lowest value of non-financial information disclosure index is
18%, below the average. The highest value is 86.9%, reaching a high level.
3.2.1.2 Measuring the non-financial disclosure level in accordance with GRI4
From the descriptive statistics result, the mean value of non-financial information
disclosure index in accordance with GRI4 is 56.51 items (total 193 items), approximately


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29.3%, it belongs to below the average level (< 50%). whereas the lowest value of nonfinancial information disclosure index is 7.8%, which is low. The highest value is 72.5%.
3.2.2 Discussion
3.2.2.1 Discussing the level of non-financial disclosure according to Vietnamese
regulations
Survey results show that general non-financial information is considered necessary
information, so that listed companies in the research sample disclosed adequatly 18/18
items, reaching 100%. However, there are also few companies got the disclosure level
very low. the lowest is 6/18 items, reaching 33.3%, example of Khang An Real Estate
Joint Stock Company (KAC). KAC did not disclose the nonfinancial information such as
company introduction, the process of formation and development, business area,
governance structure, management structure, executive board list... Regarding
environmental information, the compliance level

of environmental information
disclosure is high with 8/8 items, reaching 100%, but there are also non-compliant
companies, environmental information is 0/8 items. In fact, the survey results show that
environmental information disclosure of listed companies is still very sketchy and
coping. Many companies just listed titles of items without detail disclosure such as Cu
Chi Commercial and Industrial Developing Investment JSC (CCT), De Tam Joint Stock
Company (DTA), Development Investment Construction Number 2 JSC (DC2),
Educational Book JSC In Hanoi City (EBS), Education Cartography And Illustration JSC
(ECI), etc ... or there are cases where companies disclose nonfinancial information in an
integrated report but the information items are not comply with regulation of circular
155/BTC and only declare compliance with environmental regulations such as Hydro
Power Joint Stock Company – Power No.3 (DRL), Do Thanh Technology Corporation
(DTT), FECON Corporation (FCN), International Gas Product Shipping Joint Stock
Company (GSP), Nagakawa Group Joint Stock Company (NAG), Vinacomin - Nui Beo
Coal JSC (NBC),…With seven social information items under Circular 155/BTC,
companies has not reached the maximum level (7/7 items), only 20 listed companies
disclose 6/7 items, approximately 4.14% research sample.
3.2.2.2 Discussing the non-financial disclosure level in accordance with GRI4.
Non-financial disclosures under the guidance G4 of Global Reporting Initiative are
not mandatory in Vietnam, and listed companies may voluntarily disclose non-financial
information such as environmental, social and corporate governance in accordance with
this guideline.
According to the survey results, the level of non-financial information disclosure
of GRI4 was low at 29.3%, reaching below the average level (<50%). The gap between
listed company with the lowest GRI4 (15 points) and the highest (140 points) is quite far,
the difference is 125 points.
The survey results are the same the report of the council of Vietnam listed
company awards1 in 2017: "There is a gap in the sustainability report of high-ranking
businesses and the remaining businesses which show an uneven understanding between
businesses on GRI's G4 guidelines and many missing reports basic parts of a GRI

report".
Companies listed in the sample with non-financial information disclosure points
according to G4 guidelines have a high score as those companies that publish
1

Thông
cáo báo chí: Kỷ niệm 10 năm cuộc bình chọn BCTN và trao giải cuộc bình chọn năm 2017, accessed dated
30/3/2017


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sustainability reports integrated in their annual reports or create their own sustainability
reports such as DHG, TRA, VIC, FPT, CTD, IMP, VNM, BMP, DCN, HBC, PVD, HSG,
NTP, VCS, TDH, DPM, NSC, REE, PGS,… They belong to Top 10, Top 30, Top 50 of
the 2017 Vietnam listed company awards.
3.2.2.3. Average test of non-financial disclosure level in accordance with Vietnam
and GRI4
CONCLUSION OF CHAPTER 3

CHAPTER 4.
RESEARCH METHODS, FINDINGS AND DISCUSSION ON FACTORS
IMPACT TO THE LEVEL OF NON-FINANCIAL INFORMATION
DISCLOSURE
4.1. Research design
4.1.1. Appropriate Research Methodology
The dissertation uses the qualitative method as an in-depth interview methodology
to select the factors that lead the research paradigm from the previous studies, and explore
new factors for the research model, while proposing the scale of the factors in the model.
Using quantitative methods, specifically using the regression model to test

hypotheses, and determining the impact of each factor on non-financial disclosure levels
of companies listed in Vietnam.
4.1.2. Research process
4.1.3 Research Model and Measurement Variables
4.1.3.1 Research Model of factors influencing the level of non-financial information
disclosure
REGRESSION MODEL:
General research model of factors affecting the level of non-financial information
disclosure:
NFID = ß0 + ß1QMCT + ß2LNCT + ß3 ĐBTC + ß4VTĐL + ß5NNKD + ß6TKCT +
ß7PTKD + ß8TUOI + ß9TGNY + ß10 VVNN + ß11SHGov + ß12SHFor + ß13SHTC +
ß14KiTNB + ß15CTKiT + ß16LĐK + ß17 CEO + ß18VHCT + Ɛ.
Where:
NFID: The level of non-financial information disclosure.
The regression model built with the dependent variable is the non-financial
disclosure level measured in accordance with two standards, including Vietnam and
guidelines G4 of the Global Reporting Initiative, so that the dependent variable (NIFD) is
measured by the following two criteria:
+ NFID1: The level of non-financial information disclosure according to
Vietnamese regulations (Model 1)
+
NFID2:
The
level
of
non-financial
information
disclosure
in accordance with GRI4 (Model 2)
ß0, ß1, … ß22: Partial regression coefficients

QMCT, LNCT, ĐBTC, VTĐL, NNKD, TKCT, PTKD, TUOI, TGNY, VVNN,
SHGov, SHFor, SHTC, KiTNB, CTKiT, LĐK, CEO, VHCT: factors influencing the level
of non-financial information disclosure.
Ɛ: The error of the model.
MEASUREMENT VARIABLES IN THE MODEL


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The regression model of the dissertation consists of dependent variables and 18
independent variables with variable names, variable types, description, and measurement
variables are presented as follows:
Table 4.1. Proxies for Explanatory Variables
Variable
Name
QMCT

Variable
Type
Quantitative

LNCT

Quantitative

Company’s
Profitability

ROA

ĐBTC

Quantitative

Financial
leverage

Total
Debt/Total
Assets ratio

VTĐL
Dummy

NNKD

Dummy

TKCT

Quantitative

PTKD

Quantitative

TUOI

Quantitative

Description
Company size

Geographical
location

Measure
method
total assets

Head office in
Ho Chi Minh
City, Hanoi = 1,
Other = 0
Industry
equal to 1 if
company
belongs to the
manufacturing
sector, 0 if it
belongs to the
other.
Company’s
Current assets/
Liquidity
current
liabilities
Complexity in (Accounts
business
Receivable +

Inventory) /
Total Assets
Company age
Years of

Prior reseaches
Meek et al. (1995), Robb
et al. (2001), Karim et al.
(2013), Skouloudis et al.
(2013), Behbahani et al.
(2013b), Mohammed
and Islam (2014)
Meek et al. (1995),
Skouloudis et al. (2013),
Z are et al. (2013), Ta
Quang Binh
(2014), Pham Duc Hieu
and Do Thi Huong Lan
(2015)
Rezaee and Tuo (2017)
Meek et al. (1995), Z are
et al. (2013),
Ghasempour and Yusof
(2014), Ta Quang Binh
(2014), Pham Duc Hieu
and Do Thi Huong Lan
(2015)
Rezaee and Tuo (2017)
Robb et al. (2001),
Rezaee and Tuo (2017)

Meek et al. (1995), Robb
et al. (2001), Skouloudis
et al. (2013).

Behbahani et al. (2013b)

Ghasempour and Yusof
(2014)

Behbahani et al. (2013b),


15

Variable
Name

Variable
Type

Description

Measure
method
establishment of
the company
Period listing Listing period
time
from began to

ended
31/12/2016
Foreign
The company
Liabilities
has foreign debt
= 1, no foreign
debt = 0
State
Ratio of state
ownership
capital/total
equity

TGNY

Quantitative

VVNN

Dummy

SHGov

Quantitative

SHFor

Quantitative

Foreign
ownership

Foreign capital
ratio / total
equity

SHTC

Quantitative

Institution
Ownership

Institutional
Equity / Total
Equity

KiTNB

Dummy

CTKiT

Dummy

LĐK

Dummy

Dual
Leadership
Structure

CEO

Quantitative
Dummy

Chief
Executive

Existence of The company
internal audit established
activity
internal audit
committee = 1,
not established
=0
Audit firm
Audit firm Big4
= 1, Other = 0

Prior reseaches
Mohammed and Islam
(2014)
Zare et al. (2013)

Skouloudis et al.
(2013), Ta Quang Binh

(2014), Pham Duc Hieu
and Do Thi Huong Lan
(2015).
Skouloudis et al.
(2013), Ta Quang Binh
(2014), Pham Duc Hieu
and Do Thi Huong Lan
(2015).
Ta Quang Binh
(2014), Pham Duc Hieu
Thi Huong Lan Do
(2015), and Tuo Rezaee
(2017).
Ta Quang Binh (2014)

Behbahani et al.
(2013b), Ta Quang Binh
(2014), Pham Duc Hieu
and Do Thi Huong Lan
(2015)
Ta Quang Binh
(2014), Pham Duc Hieu
and Do Thi Huong Lan
(2015)

The Chairman
of the Board of
Directors and
the General
Director are two

independent
persons who are
equal to one
Age of CEO1
Karim et al. (2013)
Gender CEO2:
Karim et al. (2013)


16

Variable
Name

Variable
Type

Description
Officer’s
characteristics

Dummy

Dummy

VHCT

Ɛ

Dummy

Company
culture

Measure
method
male = 1,
female = 0
CEO level3:
University or
higher = 1,
below = 0
Expert CEO4:
belongs to
economics = 1,
in the other = 0
Chief Executive
Officer or
Chairman of the
Board is
foreigner = 1,
not = 0

Prior reseaches

Karim et al. (2013)

Karim et al. (2013)

Partial

regression
coefficients
The error of
the model

4.1.3.2 Research Hypotheses
Table 4.2. Hypotheses Description
Hypotheses
Hypotheses Description
H1
Large scale company has a positive impact on the level
of non-financial disclosure.
H2
Highly profitable company affects the level of nonfinancial disclosure.
H3
Financial leverage affects the level of non-financial
disclosure
H4
Company’ geographic location affects the level of nonfinancial disclosure.
H5
Company’s industry has an impact on the level of nonfinancial disclosure.
H6
The company's solvency affects the level of nonfinancial disclosure.
H7
Company’s business complexity affects the level of
non-financial disclosure
H8
Company age influences the level of non-financial
disclosure.
H9

The listing time of the company affects the level
of non-financial disclosure
H10
Company’s foreign liabilities have a positive impact on
the level of non-financial disclosure

Predicted signs
+
+/+/+/+/+
+/+/+/+


17

Hypotheses
H11
H12
H13
H14
H15
H16
H17
H18

Hypotheses Description
State-owned company affects the level of non-financial
disclosure
Foreign-owned company has a positive impact on the
level of non-financial disclosure.
Institution-owned company affects the level of nonfinancial disclosure

The company's existence of internal auditing has a
positive impact on the level of non-financial disclosure
Companies audited by Big4 have a positive impact on
the level of non-financial disclosure
Dual leadership structure affects the level of nonfinancial disclosure.
The characteristics of the manager affect the level of
non-financial disclosure.
Corporate culture has an impact on the level of nonfinancial disclosure

Predicted signs
+/+
+/+
+
+/+/+/-

Source: Author
4.1.4 Research Conduction
4.1.4.1. Research Sample
QUALITATIVE RESEARCH SAMPLE: Interview sample of 9 experts
QUANTITATIVE RESEARCH SAMPLE: The sample of annual reports of the year
ending on December 31, 2016 of 577 non-financial companies listed on HOSE and HNX.
After collecting the data, by the 3sigma method, the author removed outliers 94 listed
companies from the research sample. Finally, the research sample contains 483 listed
companies (Appendix 8).
4.1.4.2 Data Collection and Processing
4.2. Findings and Discussion
4.2.1 Findings
4.2.1.1 Findings of qualitative research
The results of expert discussion are 18 factors that are included in the research
model, of which 16 factors are inherited from previous research and 2 factors are further

explored as corporate culture factors and foreign liabilities factors. (Appendix 9)
4.2.1.2 Statistics describe the factors
4.2.1.3 Hypotheses testing results of model factors affecting the level of non-financial
disclosure according to Vietnamese regulations (Model 1)
CORRELATION ANALYSIS: Appendix 10
CHECKING
ASSUMPTIONS
WITH
HOMOGENEITY
OF
VARIANCE: Assumptions with homogeneity is not violated.
CHECKING ASSUMPTIONS WITH LINEAR RELATIONSHIP: The assumption
of linear relationship is not violated.
CHECKING ASSUMPTIONS WITH NORMALITY OF RESIDUALS: not violated.
CHECKING ASSUMPTIONS WITH AUTOCORRELATION OF RESIDUAL: not
violated.
CHECKING ASSUMPTIONS WITH MULTICOLLINEARITY: The model does not
exist in multicollinearity, it means independent variables do not correlate.


18

RESEARCH HYPOTHESES TESTING OF THE FACTORS AFFECTING THE
LEVEL
OF
NON-FINANCIAL
INFORMATION
DISCLOSURE
IN
ACCORDANCE WITH VIETNAMESE REGULATION (MODEL 1)

Based on the outcome above the standardized regression equation stand for:
NIFD 1 = 0.131QMCT + 0.125 TUOI + 0.163 SHGov + 0.109 SHTC + 0.121 CO3
Company Size factor (QMCT): The coefficient, β1 for independent variable
company size (QMCT) is equal to 0.131 and shows that the level of non-financial
information disclosure is significantly and positively associated with company size
measured by company’s total assets (QMCT). This mean that if the variable QMCT
increases by one unit, NFID index increases by 0.131 unit. Hypothesis 1 has been
accepted (sig < 5%).
Company Age factor (TUOI): The coefficient, β8 for independent variable
company age (TUOI) is equal to 0.125 and shows that the level of non-financial
information disclosure is significantly and positively associated with company age
measured by company’s establishment years (TUOI). This mean that if the variable TUOI
increases by one unit, NFID index increases by 0.125 unit. Hypothesis 8 has been
accepted (sig < 5%).
Government Ownership factor (SHGov): The coefficient, β11 for independent
variable government ownership (SHGov) is equal to 0.163 and shows that the level of
non-financial information disclosure is significantly and positively associated with
government ownership measured by stock owned by state or state institutional investors
(SHGov). This mean that if the variable SHGov increases by one unit, NFID index
increases by 0.163 unit. Hypothesis 11 has been accepted (sig < 5%).
Institutional Ownership factor (SHTC): The coefficient, β13 for independent
variable institutional ownership (SHTC) is equal to 0.109 and shows that the level of nonfinancial information disclosure is significantly and positively associated with
institutional ownership measured by stock owned by institutional investors (SHTC). This
mean that if the variable SHTC increases by one unit, NFID index increases by 0.109
unit. Hypothesis 13 has been accepted (sig < 5%).
Characteristics of CEO factor (CEO): The coefficient, β17 for independent variable
characteristics of CEO (CEO3) is equal to 0.121 and shows that the level of non-financial
information disclosure is significantly and positively associated with characteristics of
CEO measured by level of CEO (CEO3). This mean that if the variable CEO3 increases by
one unit, NFID index increases by 0.121 unit. Hypothesis 17 has been accepted (sig <

5%).
ASSESSING THE FIT OF REGRESSION MODELS
This conformance of the model is only valid for the sample data. To test whether the
model can be inferred for real or not, it is necessary to test the fit of the model.
ANALYSIS OF VARIANCE (ANOVA)
Table 4.18. Analysis of Variance
ANOVA b
Model
Sum of Squares
DF Mean Square
F
Sig.
first Regression
1,392
21
0,066
4,139 0.000 a
Residual
7,364
460
0.016
Total
8,755
481
a. Predictors: (Constant), VHCT, CEO1, PTKD, CEO2, QMCT2, TGNY, CEO4,
SHGov, VTDL, TKCT, VVNN, NNKD, LDK, KiTNB, LNCT, CEO3, CTKiT,


19

TUOI, SHTC, SHFor, DBTC
b. Dependent Variable: NFID1
The results of analysis of variance in table 4.18 show that the significance value is
0.000 (Sig = 0.000), which is below 0.05. that indicates the presence of a linear
relationship between dependent variable (NFID1) and independent variables (QMCT,
TUOI, SHGov, SHTC, CEO3).
4.2.1.4 Hypotheses testing results of model factors affecting non-financial disclosure
of GRI4 (Model 2)
CORRELATION ANALYSIS: The results of pearson correlation are in Appendix 11 of
the dissertation
CHECKING
ASSUMPTIONS
WITH
HOMOGENEITY
OF
VARIANCE: Assumptions with homogeneity is not violated.
CHECKING ASSUMPTIONS WITH LINEAR RELATIONSHIP: The assumption
of linear relationship is not violated.
CHECKING ASSUMPTIONS WITH NORMALITY OF RESIDUALS: not violated.
CHECKING ASSUMPTIONS WITH AUTOCORRELATION OF RESIDUAL: not
violated.
CHECKING ASSUMPTIONS WITH MULTICOLLINEARITY: The model does not
exist in multicollinearity, it means independent variables do not correlate.
RESEARCH HYPOTHESES TESTING OF THE FACTORS AFFECTING THE
LEVEL
OF
NON-FINANCIAL
INFORMATION
DISCLOSURE
IN

ACCORDANCE WITH GRI4 (MODEL 2)
Based on the outcome above the standardized regression equation stand for:
NFID2 = 0.239 QMCT + 0.135 LNCT + 0.106 TUOI - 0.085 TGNY + 0.095 VVNN +
0.112 SHGov + 0.212 CTKiT + 0.099 CEO
Company Size factor (QMCT): The coefficient, β1 for independent variable
company size (QMCT) is equal to 0.239 and shows that the level of non-financial
information disclosure is significantly and positively associated with company size
measured by company’s total assets (QMCT). This mean that if the variable QMCT
increases by one unit, NFID index increases by 0.239 unit. Hypothesis 1 has been
accepted (sig < 5%).
Company Profitability factor (LNCT): The coefficient, β2 for independent variable
company profitability (LNCT) is equal to 0.135 and shows that the level of non-financial
information disclosure is significantly and positively associated with company
profitability measured by return on assets (LNCT). This mean that if the variable LNCT
increases by one unit, NFID index increases by 0.135 unit. Hypothesis 2 has been
accepted (sig < 5%).
Company Age factor (TUOI): The coefficient, β8 for independent variable
company age (TUOI) is equal to 0.106 and shows that the level of non-financial
information disclosure is significantly and positively associated with company age
measured by company’s establishment years (TUOI). This mean that if the variable TUOI
increases by one unit, NFID index increases by 0.106 unit. Hypothesis 8 has been
accepted (sig < 5%).
Company Listing factor (TGNY): The coefficient, β9 for independent variable
company listing (TGNY) is equal to -0.085 and shows that the level of non-financial
information disclosure is significantly and negatively associated with company listing


20

measured by listing time (TGNY). This mean that if the variable TGNY increases by one

unit, NFID index decreases by 0.085 unit. Hypothesis 9 has been accepted (sig < 5%).
Foreigner Liabilities factor (VVNN): The coefficient, β10 for independent variable
foreigner liabilities (VVNN) is equal to 0.095 and shows that the level of non-financial
information disclosure is significantly and negatively associated with foreigner liabilities
measured by foreign debt (VVNN). This mean that if the variable VVNN increases by
one unit, NFID index increases by 0.095 unit. Hypothesis 10 has been accepted (sig <
5%).
Government Ownership factor (SHGov): The coefficient, β11 for independent
variable government ownership (SHGov) is equal to 0.112 and shows that the level of
non-financial information disclosure is significantly and positively associated with
government ownership measured by stock owned by state or state institutional investors
(SHGov). This mean that if the variable SHGov increases by one unit, NFID index
increases by 0.112 unit. Hypothesis 11 has been accepted (sig < 5%).
Audit Firms factor (CTKiT): The coefficient, β15 for independent variable audit
firms (CTKiT) is equal to 0.212 and shows that the level of non-financial information
disclosure is significantly and negatively associated with audit firms measured by listed
companies are audited by Big Four (CTKiT). This mean that if the variable CTKiT
increases by one unit, NFID index increases by 0.212 unit. Hypothesis 15 has been
accepted (sig < 5%).
Characteristics of CEO factor (CEO): The coefficient, β17 for independent variable
characteristics of CEO (CEO3) is equal to 0.099 and shows that the level of non-financial
information disclosure is significantly and positively associated with characteristics of
CEO measured by level of CEO (CEO3). This mean that if the variable CEO3 increases by
one unit, NFID index increases by 0.099 unit. Hypothesis 17 has been accepted (sig <
5%).
ASSESSMENT OF MODELING FITNESS
This conformance of the model is only valid for the sample data. To test whether the
model can be inferred for real or not, it is necessary to test the fit of the model.
ASSESSMENT OF MODELING FITNESS
Table 4.24. Analysis table of variance

ANOVAb
Model
Sum of Squares
DF
Mean Square
F
Sig.
first Regression
0.831
21
0.040
8,333 0.000 a
Residual
2,185
460
0.005
Total
3,016
481
a. Predictors: (Constant), VHCT, CEO1, PTKD, CEO2, QMCT2, TGNY, CEO4,
SHGov, VTDL, TKCT, VTCN, NNKD, LDK, KiTNB, ROA, CEO3, CTKiT, TUOI,
SHTC, SHFor, DBTC
b. Dependent Variable: NFID 2
The results of analysis of variance in table 4.24 show that the significance value is
0.000 (Sig = 0.000), which is below 0.05. That indicates the presence of a linear
relationship between dependent variable (NFID2) and independent variables (QMCT,
ROA, TUOI, TGNY, VVNN, SHGov, CTKiT, CEO).


21

4.2.2 Discussion
4.2.2.1 Discussion factor groups affecting the level of non-financial information
disclosure according to Vietnamese regulations
4.2.2.2 Discussion factor groups affecting the level of non-financial information
disclosure according to Vietnamese regulations
CONCLUSION CHAPTER 4
CHAPTER 5
CONCLUSIONS AND RECOMMENDATION
5.1. Conclusions
5.1.1 Nonfinancial information disclosure level of listed companies in Vietnam
5.1.2 Factors affect nonfinancial information disclosure level of listed companies in
Vietnam
5.2 Recommendation
5.2.1 Regarding the level of nonfinancial information disclosure
5.2.1.1 The level of non-financial information disclosure in accordance with
Vietnamese regulations
Based on the above analysis, the author suggests some policy and management
emphasize the nonfinancial information disclosure level as follows:
Strengthen company training: Government offices such as The Ministry Of
Finance Of The Socialist Republic Of Vietnam, the State Securities Commission Of
Vietnam, Vietnam Association of Accountants and Auditors (VAA) and Vietnam
Association of Certified Public Accountants (VACPA) need to organize the training
courses which support, guide companies to practice sustainable development report or
integrated with annual report by regulations.
Review the Appendix 4 – Circular 155/BTC: Listed companies who have had
knowledge about the regulations of information disclosure really unequal or understand in
the different ways about the meaning of Appendix 04 of Circular 155/BTC, so, the
Ministry of Finance of the Socialist Republic of Vietnam must establish a clear direction
about non-financial information part which relates to environment, society to aim the

listed companies to avoid misunderstanding about these regulations (see Appendix 19)
The listed companies need to build the process which is gathering, processing and
disclose the non- financial information: this purpose ensures the information disclosure is
reliable and timeliness and meet the compulsory non-financial information regulation of
these listed companies.
Sanctioning listed companies do not comply with non-financial information
disclosure regulations: like auditing financial statements, auditing companies need to
assess and give an opinion listed companies' non- financial information disclosure, then
the State Securities Commission of Vietnam have the evidence to sanction for listed
companies that disclose unadequately in accordance with regulations.
5.2.1.1 The level of non-financial information disclosure in accordance with GRI4
The reports on environment, society and corporate governance under the GRI’s G4
guidelines which is unconstraint to establish this condition on the financial reports,
because the listed companies in Vietnam establish this standard base on the company
spontaneous requirement, so there are not much the listed companies comply with this
GRI4, basing on the author research, actually the listed companies are still not clear the
benefit of the sustainable development report. These listed companies, must to actively
explore and apply to set up sustainability reporting under the GR’s G4 guideline combine


22

with the annual reports under circular 155/BTC. Beside this, the listed companies need to
understand about an important role of the non-financial information disclosure such as
environment, society and entity management. Beside the revenue, profit or loss, share
market, the companies or individual investor come from foreign investment funds also
focus on the non-financial information company factors which relate to environment,
society and company governance to decide whether making investment or not. Therefore,
the listed companies need to emphasize their responsibility which connect to
environment, society, public for company value growth, create good company image,

transparent manner of information of the companies in marketing, creating the trust from
investors to these companies.
In addition, the government management agencies such as state securities
commission of Vietnam, Vietnam Association of certified public accountant must to
propagate the standard for benefit, non-financial information’s benefit become more
necessary in the accounting information system. It has potential development which affect
to the company value (Fraser, 2012). The sustainable development report establishment
under GRI’s G4 includes: (1) Internal value in development of strategy vision of
organization, management, understand clearly about the internal department’s function,
easy to discover strong and weakness point, improve employee capacity…(2) Outside
part, basing on the transparent manner financial statements increase the trusted level of
investors, become more attractive to outside investment, cooperative improvement and
competition and other benefit collections. Beside this, the information disclosure under
this standard, the listed company can publish more information which relates to
environment, society and company management
5.2.2 Factors affect the level of non-financial information disclosure of listed
company in Vietnam
5.2.2.1 Company characteristic factors
Company Size factor
The results of regression analysis show that the company size factor create a
positive effect to the whole non-financial information disclosure in accordance with
Vietnamese regulation, and this factor has a strong impact to the information disclose
level which relates to the listed Vietnamese company spontaneity under GRI4
The big size of listed companies comply with the non-financial information
disclosure, and spontaneous trend to provide much more the non-financial information
under G4 guideline in comparison with the smaller size of listed companies are afraid to
disclose non-financial information or incapable resources to apply this standard into the
non-financial information disclosure under GRI.
Management policy aspect, government need to have the policy which expresses
control the non-financial information disclosure of the small size listed companies which

still get problems about costing and processing to collect eh data for information
disclosure under circular 155/BTC. With the large size of listed companies, government
must to have encourage policy to support these companies disclose non-financial
information under the international standards GRI4, as well as collect the typical listed
companies with large size for the standard compliance about non-financial information
disclosure under GRI4.
Beside this, the Vietnam professional association need to focus on training courses
and training the small size listed companies about the non-financial information
disclosure associated with the financial information, help the small size companies save
the cost for information disclosure and integration in information disclosure quickly.


23

Profitability factor
Regression analysis results express that profit through the return on assets ratio expresses
the positive impact to the non-financial information disclosure level under GRI4, the
listed companies has high profit as well as the high application under GRI4. So, the
author suggests the policy to the government management offices need to encourage the
listed companies that have profit or good business activities should comply with nonfinancial information disclosure under the international standard.
Company age factor
The result of regression analysis shows the age factor also affect in positive way to the
whole non-financial information disclosure under the regulation and GRI4. So, the
company have a length of time or extended life as long as well for regulation compliance
better than other companies and the level of company spontaneity applying the nonfinancial information disclosure under GRI4 much more.
For government policy, the controlling and training for each listed companies is quite
necessary especially for the new companies are just established and encourage listed
companies that established for long time ago must to apply the non-financial information
disclosure according to the GRI4.
The new listed companies are just established are lacking off the information disclosure

processing, so, they need to build the process for collecting, processing and disclosing the
data which relate to the non-financial information disclosure according to regulation.
Period of listing time factor
The factor of listing time has a negative effect to the non-financial information disclosure
according to GRI4. Thus, the companies have the longer listing time the more decrease
level of non-financial information disclose. To the government management offices need
monitor closely to non-financial information disclosure of these long listing time
companies as well as improve the policy for propaganda for these companies about the
role and profit of non-financial information disclosure under the GRI4 standard, this is the
advantage competition between these listed companies to compete or take the priority
from foreign investment funds
Foreign liabilities
Foreign loan factor expresses positive effect to the spontaneous level of the nonfinancial information disclosure under the GRI4. So, the author recommends policy to
listed company who have foreign partner or investors need to have an attention about the
information disclosure as well as the financial information such as profit, operation
business activities, … foreign partners also concern the non-financial information
disclosure of company to evaluate the social responsibility of companies in business
activities.
5.2.2.2 Ownership Structure factor
State ownership factor
Regression analysis’s result shows the state ownership factors have a positive
impact to the non-financial information disclosure level according with Vietnamese
regulation and GRI4 standard. So, the listed companies belong to the state ownership
have a strong compliance and spontaneous about non-financial information disclosure are
higher than others. Therefore, the non-financial information disclosure of the listed
companies must be kept an eyes by government agencies with the listed companies with
capital structure from government with minority percentage or without government
investment such as stakeholder.
Institution ownership factor

24

The result of regression analysis shows institution ownership factor also affect in
positive way to disclosure level of non-financial information under Vietnamese
regulation. So, the capital structure from one organization express the high rate of nonfinancial information disclosure’s regulation compliance than the organization owned by
many stakeholders. Therefore, the non-financial information disclosure must be much
more attention in to the companies with capital structure form many stakeholders.
5.2.2.3 Corporate Governance factors
Chief executive officer’s characteristic factor
The regression analysis’s result expresses chief executive officer’s competence
factor (CEO) have a positive influence to the non-financial information disclosure level,
so, the author suggest that the listed companies need to pay attention into the CEO’s
competence in promotion or appointment.
Auditing company factor
The auditing company factor also has a positive impact on the whole non-financial
information disclosure according to with GRI4. So, the listed companies which are
audited by Big 4 show the high spontaneous rate about non-financial information
disclosure.
From the research, the author gives some recommendations to the government
management agencies about improvement of quality control of the independent auditing
companies much more by methods: improve periodic inspections or inspections without
announce about the independent auditing companies’ activities, and issue the punishment
in law to prevent the independent auditing companies do not comply with the law to
affect the auditing service quality control.
5.3 Limitation and recommendation for future research direction
The dissertation applies the unweighted index method to mark non-financial
information disclosure level according to Vietnamese regulationa, and GRI4, but this
method also expresses some limitations such as:
(1) With the information lists are marked 1: the dissertation cannot distinguish the

listed companies disclose level in high rate, low rate or cannot measure the rate of
information disclosure exactly, because the companies just have information disclose
which is marked 1.
(2) With the information lists are marked 0: the listed companies do not disclose
information which is marked 0 and do not distinguish the companies have the information
disclose or not.
Form the above limitation, the dissertation gives some new opened direction for
the future research direction: To prevent the limitation of the index method for
information disclosure, the future research needs to apply the content analysis method.
With the content method, the listed companies have the information disclosure need to
counting words, sentences in each information disclosure items, so that, the limitations
are fixed when the company disclose information which has different disclosure level or
detailed information disclosure with the index method.


25

THE CONCLUSION
With the purpose of measurement assesses the non-financial information
disclosure level of the listed Vietnamese companies which comply accordance with
Vietnamese regulation and GRI4, and the target to determine the factor and measure
each factor’s influence which affects the non-financial information disclosure level,
the dissertation sets up the system which includes the previous international and
internal research results are arranged in a logical way, and base on the research
literature to mark the non-financial information disclosure score and give explanation
about the factors affecting to the non-financial information disclosure level, using the
mixture analysis method for study or research. The result of qualitative research
discovers the factors which are added into the empirical model, and the quantitative
research’s result, typically descriptive Statistic analysis to describe the research
objects, using the regression analysis to examine the research hypotheses.

The dissertation contains the theoretical meaning: testing and supplementing
the research method which measures the level of non-financial information disclosure
generally and a developing country such as Vietnam especially, testing and
supplementing factors into the empirical model and measure the factors impact the
non-financial information disclosure generally and there are specifically the influences
in the developing market such as Vietnam. In practical circumstance: the dissertation
expresses the measurement about the non-financial information level of the
Vietnamese listed companies in 2016 according to the Vietnamese regulation and the
G4 guidance which belongs the global reporting initiative (known as GRI -an
international independent standards organization). This shows the non-financial
information disclosure level of these listed company in which rate is matching or not
with the international standards, and distribute the policy implication for the
government management agencies and company management from the dissertation’s
result. About the company aspect, the dissertation suggests the management policy
which connects to each factor influences to the nonfinancial information disclosure,
then these become the benefit in non-financial information disclosure of listed
companies in the better way and the information become more detail and faithfully
represented financial information. About the government management offices, they
need to review some regulation documents, policies about the non-financial
information disclosure, Circular 155/BTC in particular need have some adjustments to
matching the reality closely. About the Vietnamese research associations such as
Vietnam Association of Certified Public Accountant (VACPA), the dissertation is an
elaborate, serious research document which is quite necessary for the professional
researchers especially in accounting field with the purpose to compare the other
resource documents for teaching about non-financial information disclosure level, and
the factors which affect to the non-financial information disclosure.
However, the dissertation also offers some limitations on the method in
measurement and still not discover some other factors affecting non-financial
information disclosure, so the dissertation just becomes the foundation for other future
researcher reaching the new results or new research aspects.