Impact of Information Disclosure on Financial Risks of Listed Real Estate Companies in Vietnam


Authors

  • Dang Anh Tuan School of Banking and Finance - National Economics University, Vietnam
  • Pham Dieu Linh
  • Phan Bao Khanh
  • Trinh Ngoc Quang Anh
  • Do Khoi Nguyen
  • Phan Thi Tuyet School of Advanced Education Programs - National Economics University, Vietnam
DOI: https://doi.org/10.57110/vnujeb.v3i2.159

Keywords:

Financial disclosure, financial risk, equity, listed companies, real estate development companies

Abstract

The study analyzes the impact of disclosure on the financial risks of real estate development companies. The data was collected from the annual reports and financial statements of 35 listed companies on the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) from 2019 to 2021. The results show that more information disclosure leads to lower financial risks for companies besides other firm-specific factors. According to the regression results of the financial risk model, variables such as return on sales (ROS), return on total assets (ROA), and inventory turnover (IT) are not significantly statistical for the financial risk dependent variable (FR). The variables of firm size (SIZE), age of the firm (AGE), the degree of financial leverage (DFL) and basic profitability (BEP), are all positively related to risk. The remaining 5 variables of information disclosure (DS), debt-to-total assets (TD), short-term solvency (CR), GDP growth rate (GDPg), and inflation (IR) are negatively related to financial risk. Our results emphasize the importance of disclosure and make several implications for companies.

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Published

25-04-2023

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How to Cite

Dang Anh Tuan, Pham Dieu Linh, Phan Bao Khanh, Trinh Ngoc Quang Anh, Do Khoi Nguyen, & Phan Thi Tuyet. (2023). Impact of Information Disclosure on Financial Risks of Listed Real Estate Companies in Vietnam. VNU University of Economics and Business, 3(2), 30. https://doi.org/10.57110/vnujeb.v3i2.159

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Original Articles