Governance, Audit Committee and Strategic Management Accounting in Listed Companies in Vietnam

DOI

10.2991/aebmr.k.211119.001How to use a DOI?

Keywords

Corporate Governance; Audit Committee; Strategic Management Accounting; listed companies; Biprobit model; characteristics of a company

Abstract

Research purpose:

Our research purpose is to explore the relationship of three important components: Corporate Governance, Audit Committee, Strategic Management Accounting.

Research motivation:

Corporate governance includes a system of institutions, policies, and laws in order to effectively organize, operate, and control the company while also ensure the stakeholders’ interests. The Audit Committee is a new part of the operating committees of a joint-stock company that performs management and control tasks. On the other hand, strategic management accounting is considered a specialized department or a management tool that plays an increasingly important role in listed joint-stock companies. However, from the literature, there are difficulties in incorporating corporate governance and strategic management accounting in listed companies. The appearance of the Audit Committee will be an effective measure to reduce uncertainty and unnecessary factors that may hinder the application of strategic management accounting.

Research design, approach and method:

We use both qualitative and quantitative research methods. We use the Biprobit model on the secondary data obtained from listed companies in Vietnam between 2013 and 2020.

Main findings:

Research results have provided evidences on the existence of the relationship between Corporate Governance, Audit Committee, and Strategic Management Accounting. Corporate governance directly affects strategic management accounting while also indirectly affects strategic management accounting through the Audit Committee. Depending on the characteristics of each listed company (size, number of board members, whether financial statements are audited by the Big 4 or non-Big 4), the company will have to apply different levels of strategic management accounting and audit committee.

Practical/managerial implications:

In order to simultaneously apply strategic management accounting and audit committee, listed companies need to be of larger size, with higher number of board members. When developing and improving strategic management accounting, managers need to combine observations of firm-specific characteristics with the recommendations of the Audit Committee.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Huynh LOI
AU  - Le Doan Minh DUC
AU  - Nguyen Thanh HUNG
PY  - 2021
DA  - 2021/12/07
TI  - Governance, Audit Committee and Strategic Management Accounting in Listed Companies in Vietnam
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 1
EP  - 14
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.001
DO  - 10.2991/aebmr.k.211119.001
ID  - LOI2021
ER  -