Changes in accounting regulations toward IFRS and value relevance of accounting information- evidence from Vietnamese listed firms

Tóm tắt

In the late of 2014, the new Vietnamese accounting regimes for enterpris
es, which is regarded as being more appropriate for the business practices
and being harmonized with IFRS, was issued. The new regulation is a step
forward in the roadmap of IFRS adoption in Vietnam with an expectation of
improvement in accounting quality. This paper contributes to the discus
sion of the benefit of IFRS adoption by providing statistical evidence on
how the new accounting regimes effect to the value relevance of account
ing information (i.e. the relationship between accounting earnings, book
values of equity and share price) of Vietnamese listed firms. Based on fi
nancial data of 100 Vietnamese listed firm in 10 year (2010-2019), panel
regression analysis reveals that the new accounting regimes only enhance
value relevance of earnings but do not affect to the relationship between
book value of equity and share prices. These results confirm that harmoni
zation of accounting regulation with IFRS have certain effect to accounting
quality. This supports for the direction to adopt IFRS in Vietnam but also
alerts for more empirical research in the future to understand deeply on the
cost and benefit of IFRS in developing countries like Vietnam