FACTORS AFFECTING THE QUALITY OF FINANCIAL STATEMENT INFORMATION OF MICRO ENTERPRISES IN HO CHI MINH CITY

Abstract

The purpose of this study is to identify and measure the impact of various factors on the quality of financial statement information of micro enterprises in Ho Chi Minh City. The study adopts a mixed-method approach, combining qualitative (expert discussions) and quantitative methods (a survey of 112 micro enterprises in HCM City, with 200 valid responses). Data were analyzed using statistical techniques including Cronbach’s Alpha reliability testing, exploratory factor analysis (EFA), and multiple linear regression (using SPSS software). The results show that six factors significantly affect the quality of financial statement information of micro enterprises, namely: Accounting staff competence, Company size, Internal control effectiveness, Accounting software, Tax obligation pressure, and Earnings management behavior. Of these, the first four factors positively contribute to information quality, whereas tax pressure and earnings management have negative impacts. The multivariate regression indicates that accounting software is the most influential positive factor, while tax pressure is the strongest negative factor affecting information quality. Based on the findings, the study proposes several recommendations to improve the financial reporting quality of micro enterprises, thereby enhancing information transparency and supporting the sustainable development of the micro enterprise sector.