FACTORS AFFECTING THE MANIPULATION OF FINANCIAL STATEMENTS OF ENTERPRISES LISTED ON HANOI STOCK EXCHANGE

Abstract

The study was conducted to determine the factors that influencing the manipulation of financial statements of companies listed on the HaNoi Stock Exchange (HNX) by a logistic regression model. The data set used includes 103 financial statements of 71 enterprises that are listed on the Hanoi Stock Exchange over the period of 2016 to 2019. Most of the companies investigated were operating in the real estate sector (34.21%) or the utility business (26.32%). The analysis found that 38 financial statements were classified into manipulated group. The result from logistics model suggested that the possibility of manipulated financial statements is inversely correlated with two variables (TATA and FIRM AGE). The probability of manipulated financial statements is higher as AQI, SGAI, CAF and SIZE variables increase. As a result of this study, the paper has proposed four solutions for companies listed on the HaNoi Stock Exchange to improve transparency and reduce the problem of manipulated financial information in audited annual reports.