Summary of economic thesis: The impact of constituent factors of the internal control system on the business performance in Vietnam electricity

This research is aimed to explore elements of internal control system and evaluate their impact on effectiveness and efficiency of EVN’s operation, with the following goals: Finding factors of Internal Control System which effect EVN’s performance; evaluate those impact on EVN’s performance.
Nội dung trích xuất từ tài liệu:
Summary of economic thesis: The impact of constituent factors of the internal control system on the business performance in Vietnam electricity MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY  VÕ THU PHỤNGTHE IMPACT OF CONSTITUENT FACTORS OF THEINTERNAL CONTROL SYSTEM ON THE BUSINESS PERFORMANCE IN VIETNAM ELECTRICITY Major: Accounting Code: 62.34.03.01 SUMMARY OF ECONOMIC THESIS Hồ Chí Minh City- 2016 LIST OF THE DISCLOSURE1. Vo Phung Thu (2013), Interest groups and its negative effecting on the economy and corrective solutions, Journal of Economics- Technology, Binh Duong University, No. 04, pp 110-119, December 2013.2. Vo Phung Thu (2014), The impact of control environment on the effectiveness and efficiency of the operations of Vietnam Electricity, Journal of Economics- Technology, Binh Duong University, No. 06, pp 77-95, June 2014.3. Nguyen Dat Tien, Vo Phung Thu (2016), Factors of Internal Control affecting performance by business group Vietnam Electricity, Journal of Economics- Technology, Binh Duong University;4. Vo Nhi Van, Vo Phung Thu (2016), Internal Control System at Southern Power Corporation_ current state and improving solution, Proceedings of the International Conference on Science and Technology of Electric Power University. 1 PREFACE1. Study’s reasonIn recent years, many state-owned enterprises (SOEs) have notfulfilled their most important political role, due to their inefficientoperation, as a tool supporting the government to regulate thenation’s macro-economy.Extant literature found that internal control affects operationalefficiency. However, in the context of Vietnam, there is lack ofevidence showing that operational inefficiency, specifically of SOEs,is caused by weakness existed in internal control system. Therefore,this study focuses on the impact of internal control on operationalefficiency, empirically at Vietnam Electricity Group (EVN).2. Research aimsThis research is aimed to explore elements of internal control systemand evaluate their impact on effectiveness and efficiency of EVN’soperation, with the following goals: Finding factors of Internal Control System which effect EVN’sperformance. Evaluate those impact on EVN’s performance.3. Research questionsQuestion 1: How is the current performance of EVN?Question 2: Which factor of Internal Control System impacts onEVN’s operation?Question 3: What is the level of impact that each factor has on EVN’sperformance? 24. Research Subjects and Research ScopeResearch subjects: Factors of Internal Control System which impactson EVN’s performance.Research scope: focus on the impact on EVN’s performance, but notother goals such as: the truth and fair of financial reporting orregulation compliance.5. Research MethodThis work employs mixed methodology, combining qualitative andquantitative paradigm. All factors discovered in qualitative step byusing Exploratory Factor Analysis (EFA) model will be assessed inquantitative step for hypothesis test.Questionaire is filled via either face-to-face interviews or emails, bynon-probability sampling method. Survey process is conductedthrough two stages:Preliminary stage: is to evaluate the reliability of the scale (usingCronbachs alpha) and discover factors (using EFA). Any flaw inquestionnaire found will be fixed before official questionnaire aresent (in stage 2). This research optimally employs least-squares indexin STEPWISE model to define and evaluate the impact of internalcontrol factors on EVN’s performance. The suitability of the model istested by the R2 coefficient.6. Dissertation contributionsIn theoryReviewing the theories of internal control and internal controlreports, both internationally and domestically.Accomplishing the framework of the internal control consisting of 5factors, 10 elements with 49 observed variables which affect SOEs’performance, evidence from EVN. 3Building up a new measuring scales, which may be used by futureresearch in the field.In practiceDiscovering 20 new observed variables affecting the businessperformance of EVN, this research mitigates weaknesses of internalcontrol at EVN which makes the entity’s operation inefficient. Thesetwenty variables together with the 29 variables identified in COSOReport 2013 constitute measuring scales of factors in internal controlsystem which has an influence on the operational efficiency of EVN.Via quantitative research this dissetation has discovered 49 measuredvariables correlated with the 10 elements that affect the performanceof EVN. In this light, the work has developed a model comprisin ...