The Audit Committee’s Forecasted Impact on the Timeliness of Financial Statements in the Current Unpredictable Business Environment – Evidence in Vietnamese Listed Joint Stock Companies

Loi Huynh, Duc Le Doan Minh (), Anh Tran Thi Hue and Viet Phung Quoc
Additional contact information
Loi Huynh: University of Economics Ho Chi Minh City, School of Accounting
Duc Le Doan Minh: University of Economics Ho Chi Minh City, School of Accounting
Anh Tran Thi Hue: University of Economics Ho Chi Minh City, School of Accounting
Viet Phung Quoc: University of Economics Ho Chi Minh City, School of Accounting

A chapter in Proceedings of the International Conference on Emerging Challenges: Strategic Adaptation in the World of Uncertainties (ICECH 2022), 2023, pp 221-235 from Springer

Abstract: Abstract This article aims to analyze the influence of the Audit Committee (AC) in the organizational structure of the joint stock company on the timeliness of the Financial Statements (FS). AC is a new part of the organizational structure of the joint-stock company in Vietnam, which had just been legislated and took effect in 2021. AC aims to inspect and supervise the company’s activities to enhance the truthfulness, reasonableness, and timeliness of Financial Statements (FS). Under the effect of the Covid-19 epidemic and the ongoing trade war, the global business environment has become unpredictable in recent years as well as in the coming years. Since then, it has significantly impacted the production and business situation, and the time of publishing FS of companies. A quantitative study method is conducted by collecting data from the year 2017 to 2021 from all listed companies that have established AC. The authors analyzed the impact of Audit Committees on the timing of the FS publication. The results showed that AC with a compact personnel structure has played an active role in improving the timeliness of FS. When the company has an Audit Committee, the probability that FS information is timely published increases by 14.34%. This finding encourages joint-stock companies to examine the provisions of Enterprise Law 2020 when selecting a management structure to enhance the timeliness of financial statement information in the present unpredictable business climate.

Keywords: Audit Committee; Timeliness; FInancial Statements; Financial Reporting; Joint-stock company; Binary Logistic model (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-150-0_16

Ordering information: This item can be ordered from
http://www.springer.com/9789464631500

DOI: 10.2991/978-94-6463-150-0_16

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().