The Factors Affecting the Level of Information Disclosure on Financial Statements in the Industrial Enterprises Listed on Ho Chi Minh Stock Exchange

This research analyzes the factors affecting the level of information disclosure on financial statements in the industrial enterprises listed on Ho Chi Minh stock exchange. Using financial statements of 87 industrial enterprises of the fiscal year 2017, the research shows that there are 6 factors affecting and having a positive relations with the level of information disclosure. These include: the scale of business, Duration of operation, Audit firm reputation, Solvency, Financial leverage and Return on Equity (ROE). The result points to signals that help the State Securities Commission to control better of information disclosure of firms. In addition, the study recommends measures for shareholders, especially those in large companies to strengthen the supervision, control managers in the disclosure of business information.

Published by SCHOLINK INC. companies. It is use as a tool to relieve pressure from government's regulations (Watts & Zimmerman, 1986). Thus, the following hypothesis is proposed: H 1 : Scale of the firm is positively related to information disclosure in financial statements

Duration of Operation
According to many studies, it has been shown that perennial company have more information to disclose than the younger ones. Information which is less disclosure in financial statements may be harm to the competitive position of young firms. Caferman and Cooke (2002) found that operation period has a positive impact on the level of disclosure. For perennial company, the information disclosure will be perfective as it has improved over time. Hence, the study propose next hypothesis: H 2 : Duration of operation is positively related to information disclosure in financial statements

Audit Firm Reputation
Auditing assures that business's financial reports comply with the provisions of the law. It is an important factor to ensure the faithful representation and neutrality of financial information. This is the foundation for investment decision-making and business management (Jensen & Meckling, 1976). Bhayani (2012) indeed confirmed that large auditing firms are more concerned about protecting their reputation so they will spend more time in auditing financial reports. If there are risks involving in auditing, large auditing firms will suffer more damage than small ones. On the other hand, small auditing firms have less reputation in auditing market, thus they tend to please the customer's requirement rather than focusing on the quality of information disclosure. Therefore, the following hypothesis is proposed: H 3 : Audit firm reputation is positively related to information disclosure in financial statements

Board of Director Members
It is necessary to have supervisory function of the board because there is always a conflict of interest between investors and managers according to agency theory. Avoidance, excessive privilege, and non-optimal investments are common problems in managers' abuse of power (Jensen & Meckling, 1976). To reduce this conflict, the Board of Directors will exercise its power to monitor and control the management In another research, Yanesari (2012) furnished evidence that if the board members are manager of company or have a relative with the owner of company, this role will be limited. The reason is that broad of director will manage the company's operations in a way that is beneficial to them without favoring for other shareholders. A company which has a high proportion of independent board members will better monitor the behavior of managers and reduce the conflict between investors and managers. To do this, independent board members tend to encourage and support the release of many information to public. The study propose next hypothesis: Descriptive Analysis: is used to describe the phenomenon or characteristics relating to research. The research focuses on descriptive statistics of information disclosure's level and the factors affecting the level of information disclosure.
Correlational analysis: is used to test the linear correlation between variables in the model: between dependent variable and each independent variable; and between the independent variables. When the correlation coefficient is 0.5 or higher, two variables are considered to be closely correlated. This study uses the Pearson correlation coefficient to test the relationship between variables and to detect the multicollinearity.

Multivariate regression analysis: is used to determine the relationship between independent variables
and dependent variables in study model of influencing factors. Based on the Adjusted R square, it shows how the suitable regression model is constructed. Any factor that has a higher beta factor may conclude that it has a greater effect than the others in the research model. Source: Data collected in 2017 is processed by SPSS.

Research Results
The correlation matrix shows that the dependent variable and the independent variables are related in the same direction. The correlation coefficient between the dependent variable and the independent variables ranges from 0.054 to 0.463. This relationship is from weak to moderate. In fact, with a 5% significance level, the assumption of zero correlation is rejected. This means that in the overall there exists a linear correlation between the dependent variable and the independent variables.
Regression model uses SPSS software 23, uses the enter method, then eliminates the X 4 variable (board of directors members), X 5 (return on fixed assets) due to poor reliability. Running model for last time, the following results are given:  Statistical parameters in the last model shows that the independent variables are statistical significance in which X 3 variable (audit firm reputation), X 6 (solvency) and X 8 (return on equity) are valued at sig <0.05; the remaining variables have a significance level of 10%. This proves that in the last model the independent variables are highly reliable in explaining fluctuations in the information disclosure's level of enterprises. From the parameters in the model, the research has the forecasting equation as follows: Published by SCHOLINK INC.
tend to be more informative than the rest. The reason is that large audit firms invest more time in auditing financial statements to protect their reputation, and force their clients to disclose sufficient information.
Research's outcomes are corresponding to prior studies (Bahayani, 2012;Nguyen, 2013). The result of this study suggests that high solvency (X 6 ) can lead to more information is disclosed. The finding of this study is also consistent with signaling theory and argument of Nandi and Ghosh (2012). This can be explained that companies are able to pay well, healthy financial situation will publish much information to attract investors. The finding of this study reveals that financial leverage factor (X 7 ) affects significantly positively the level of information disclosure. It is explicated that company borrowing money from banks or creditor must disclose sufficient information to their creditors. This conclusion is consistent with the research of Naser (1998). The results also indicate that ROE (X 8 ) is positively related to information disclosure's level. Firms having high profit margin will use the capital effectively. When the company has high ROE ratio, the investors will be more attracted. Therefore, these enterprises tend to provide more information than those of low efficiency. This finding is consistent with prior studies signaling theory and Barako (2006).

Conclusion and Solution
The study finds that information disclosure of industrial-listed companies on the HOSE depends on six factors: enterprise scale, duration of operation, audit firm reputation, solvency, financial leverage and ROE. Therefore, users can predict that businesses having these factors with high level will provide more information than the others. This may help users to save time on searching information and comparing the level of information disclosure between businesses. In addition, the State Securities Commission may rely on research's findings to serve for supervising the firm's operation. Accordingly, enterprises having small size, shorter operating, being audited by non-Big 4 auditors, low liquidity, low debts or low returns tend to disclose inadequate information. Therefore, the regulator can strengthen monitor those units. According to the results of this study, business size also affects information disclosure. The larger scale businesses have, the higher the level of information they disclose. However, there is the increase in separation of ownership and management when the firm size is higher. This leads to raise the risk of information asymmetry. In other words, the pressure of shareholders makes the management to be responsible for disclosing sufficient information.
Therefore, in order to ensure shareholders' interests, they need to strengthen monitoring activities and require legal constraints for regulators in disclosing information. Consequently, the owners can take the following measures to ensure that enterprise provides its full information: (i) Establishing a list of information to be provided (including mandatory information as required and additional information); (ii) Contractual constraint with managers on the provision of information; (iii) Strengthen monitoring mechanism for information disclosure in each enterprise.