Factors Affecting Financial Effectiveness: A Case Study of Accounting Service Enterprises in Vietnam
Abstract
The COVID-19 epidemic appeared in Vietnam on January 1, 2020, and has now spread to all provinces and cities nationwide. The COVID-19 pandemic has had a substantial impact on all socio-economic fields. Enterprises' production and business activities are most clearly affected, directly affecting accounting service activities. Evaluating the financial performance of a business is an essential thing that any business owner, investment advisor, finance, management level, an investor needs to make an intelligent decision for the enterprise in the long-term growth of your business. Aside from the quality of the product or service, a company cannot be viable in the long run if it is not financially successful. The article aims to identify factors affecting financial effectiveness of enterprises. For many years or just starting, most companies have had four financial goals: profitability, liquidity, efficiency, and stability. The effectiveness of corporate finance plays a vital role in enterprises. Thus, the authors surveyed data collected from 700 accounting staff working at accounting service enterprises in Vietnam. The method applied structural equation modeling (SEM) using SPSS 20.0, Amos software has revealed five factors affecting the financial effectiveness with a significance level of 0.01. The paper's novelty gave policy implications to improve the finance effectiveness of accounting service enterprises in Vietnam after the COVID-19 pandemic.
Keywords: financial effectiveness, accounting service, enterprises.
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