FACTORS AFFECTING ACCOUNTING POLICY CHOICE: EVIDENCE FROM MANUFACTURING SMES IN HO CHI MINH CITY, VIET NAM
DOI:
https://doi.org/10.62985/j.huit_ojs.vol26.no3E.644Keywords:
Accounting policy selection, SMEs, corporate image, financial statements, Viet Nam, regression analysis.Abstract
This study investigates the factors influencing accounting policy choices among small and medium sized manufacturing enterprises (SMEs) in Ho Chi Minh City, Viet Nam. Survey questionnaires were distributed to 196 enterprises, of which 156 valid responses were collected and analyzed. The data were processed using descriptive statistics, exploratory factor analysis (EFA), correlation analysis, and multiple regression analysis. The findings identify six key determinants of accounting policy selection: corporate image toward external stakeholders, financial reporting information needs, firm characteristics, accounting staff competency, corporate image toward shareholders, and tax-related factors. The results indicate that all six factors positively influence accounting policy choices. Among them, corporate image toward external stakeholders exerts the strongest impact (β = 0.319), while tax related factors have the weakest influence (β = 0.169). The findings further reveal a shift in managerial priorities, emphasizing information transparency and corporate reputation over tax considerations. These results provide empirical evidence for policymakers and SME managers to improve accounting practices, enhance financial reporting quality, and strengthen stakeholder confidence.
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