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The influence of managers’ perception, steady growth, economic scale, and financial capacity on the ability to adopt international financial reporting standards of Vietnamese enterprises

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  • Quoc Thinh Tran
  • Khanh Lam Tran

Abstract

International Financial Reporting Standards (IFRS) are global accounting standards. Many countries have gradually applied international standards to replace national accounting standards. This study aims to test the factors that affect the ability of Vietnamese enterprises to apply IFRS. We surveyed 863 managers and heads/deputies of the accounting departments of firms located in Ho Chi Minh City, Vietnam. Cross-sectional data were collected in 2022. The study used the exploratory factor analysis method and multivariate regression to test the study’s hypotheses. The results show that steady growth, economic scale, financial capacity, and managers’ perceptions positively affect the adoption of IFRS by Vietnamese enterprises. The research results emphasize that managers of Vietnamese enterprises should change their perception and have a positive mindset to start applying IFRS. The results demonstrate that businesses need to be ready and have a plan to apply IFRS successfully. It is an opportunity for Vietnamese enterprises to access financial resources for growth and development in the context of economic integration. This study also contributes empirical evidence on the factors influencing IFRS adoption in developing countries like Vietnam and it is a solid basis for Vietnamese management agencies to have appropriate policies and mechanisms for promulgating regulations. Empirical results support managers of Vietnamese enterprises in raising awareness of the benefits of applying IFRS and planning to prepare financial resources and firm scales to apply IFRS successfully. It is also a valuable document that guides and supports enterprises in applying IFRS effectively.

Suggested Citation

  • Quoc Thinh Tran & Khanh Lam Tran, 2024. "The influence of managers’ perception, steady growth, economic scale, and financial capacity on the ability to adopt international financial reporting standards of Vietnamese enterprises," Cogent Business & Management, Taylor & Francis Journals, vol. 11(1), pages 2391567-239, December.
  • Handle: RePEc:taf:oabmxx:v:11:y:2024:i:1:p:2391567
    DOI: 10.1080/23311975.2024.2391567
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