Evaluating the Knowledge of Small and Medium Enteprises’ Managers in Presenting the Information on Financial Statements toward International Integration

Date Received: Jun 11, 2020

Date Published: Mar 05, 2021

DOI: https://doi.org/10.31817/vjas.2020.3.3.03

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Issue: Vol. 3 No. 3 (2020): Vietnam Journal of Agricultural Sciences

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ECONOMICS, SOCIETY AND RURAL DEVELOPMENT

How to Cite:

Hong, P., Trang, P., Binh, N., & Yen, T. (2021). Evaluating the Knowledge of Small and Medium Enteprises’ Managers in Presenting the Information on Financial Statements toward International Integration. Vietnam Journal of Agricultural Sciences, 3(3), 689–699. https://doi.org/10.31817/vjas.2020.3.3.03

Evaluating the Knowledge of Small and Medium Enteprises’ Managers in Presenting the Information on Financial Statements toward International Integration

Phi Thi Diem Hong (*) 1 , Phan Le Trang 1 , Nguyen Thi Hai Binh 1   , Tran Nguyen Thi Yen 1

  • Corresponding author: ptdhong@vnua.edu.vn
  • 1 Faculty of Accounting and Business Management, Vietnam National University of Agriculture, Hanoi 131000, Vietnam

    • Keywords

    Knowledge of manager, SMEs, financial statements, international integration

    Abstract


    In the context of international integration, managers’ knowledge plays an important role as a valuable organizational resource from a strategic perspective and a foundation for competitive advantage in business environment. The aim of this paper was to build assessment model and attest it in the case of Vietnam’s Small Medium Enterprises (SMEs) regarding manager’s knowledge in preparing the information on financial statements. By analyzing current relative standards (including international and national systems) and two basic assessment models (ASK by Bloom et al. (1956) and BKD by Shinseki (1999)), the study developed to identify the assessment criteria of the manager’s knowledge as one main research objective. The research data of 71 SMEs in the sample showed that: (i)The relationship between managers’ background and their understanding about information on their financial statements was a negative linkage; (ii) The number of managers using their financial statements to make a business decision was very low; and (iii) The most important criteria on the financial statement in their views were profits and revenues.

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