CAPITAL OWNERSHIP STRUCTURE AND ITS IMPACT ON FINANCIAL REPORTING QUALITY: EVIDENCE FROM COMPANIES ON THE VIETNAM STOCK MARKET

This research will focus on the impact of ownership structure on the quality of financial reporting for firms in Vietnam, considering such moderator variables as industry differences. This study considers ownership characteristics, including state ownership, foreign ownership, managerial ownership, and ownership concentration, to analyse which one of those factors affects the transparency, accuracy, and timeliness of financial reports across the industry. Using a panel data set of 1,664 companies listed in HOSE, HNX, and UPCoM within a continuous period of nine years, the study applies multivariate regression methods with some industrial data analysis to evaluate the impact of ownership structure. The findings of the study show that state ownership may negatively affect financial reporting quality, and foreign ownership is better in terms of transparency. This result is consistent with previous studies. However, the author found that ownership concentration and managerial ownership have no clear relationship with financial reporting quality. Variations across industrial groups are also found to be significant for explaining how ownership structure contributes to a greater understanding of this mechanism. Such evidence may provide policy recommendations for improving the level of transparency and quality of financial information in emerging markets such as Vietnam.