Factors influencing the level of information disclosure on financial statements of Vietnamese listed banks

Abstract

The banking sector plays a crucial role in the financial systems, so governments strictly mandate the disclosure of information by banks to guarantee the economic system. This study collected data from 27 listed commercial banks in Vietnam from 2017 to 2023 and employed panel data analysis to test the research model. The study used an unweighted scoring method for indicators of four financial statement elements to measure the disclosure level of financial statement information (FSI). The results indicated that the disclosure level of FSI is quite good, but a gap in disclorusing FSI in the banking sector. The findings of the panel analysis show that financial leverage, fixed asset ratio, audit firms from Big4, the number of subsidiaries, foreign ownership, and institutional ownership statistically impact the disclosure level of FSI. The study identifies three factors positively influencing the disclosure level of FSI, including audit firms from Big4, foreign ownership, and the number of subsidiaries, and three factors – leverage, fixed asset ratio, and institutional ownership negatively impact the FSI disclosure of the listed banks.