IMPORTANCE OF ACCOUNTING DISCLOSURE FOR COMMERCIAL BANKS IN LENDING LISTED COMPANIES IN VIETNAM

Abstract

In Vietnam, accounting disclosure for commercial banks’ needs has been received less attention from scholars and researchers, compared to a large number of researches on the investors’ information needs. Meanwhile, listed companies in Vietnam remain a tendency of using bank loans rather than approaching financial sources in the stock market, mainly because the capital scale of the Vietnam stock market is not sufficient for listed companies’ finance needs. Hence, this article aims to clarify whether accounting information plays an essential role in analyzing the credit-trustworthy of listed companies and to determine which one of three main financial statements is the most useful for bank loan officers. The data used for the research was collected through questionnaire surveys sent to credit officers of commercial banks in Vietnam. The questions were designed with a five point Likert-scale. The research results showed that bank loan officers mainly used accounting disclosure as the most important information source when deciding whether or not to provide loans to listed companies and all three main financial statements had particularly significant importance in lending decisions.