Auditors' role in valuation practices during corporate restructuring in Vietnam: A qualitative insight

Thi Van Dung Do; Thi Thanh Nhan Nguyen; Huy Hung Pham

doi:10.31893/multiscience.2025453

Keywords:

auditors

corporate restructuring

valuation activities

Vietnam

Abstract

This study addresses the question of how auditors contribute to the valuation process during corporate restructuring in Vietnam, by exploring their roles and challenges in emerging market contexts. The study was conducted to investigate the significant responsibilities of auditors, the difficulties they face, and how auditors' contributions to the valuation process affect the outcome of the restructuring of firms, with the aim of highlighting their importance in ensuring transparency, compliance, and fairness. Qualitative research methodology was used, including semistructured interviews with 15 senior auditors from Big 4 and Non-Big 4 companies, as well as a literature analysis on financial reporting and valuation. The study focuses on actual valuation cases during the 2019-2024 period to understand current activities and challenges. The results of the study show that auditors play an important role in validating financial data, ensuring regulatory compliance, and providing independent valuation but face unique challenges such as unreliable financial records, regulatory inconsistencies, market volatility, and cultural pressures. However, their contributions have an enormous influence on the negotiation process, transaction prices, and stakeholder confidence. These results are important because they demonstrate the need for stricter regulatory enforcement, improved corporate governance, and appropriate valuation practices in Viet Nam. These findings underscore the importance of auditors in facilitating successful restructuring processes and providing insights to other emerging markets facing similar challenges.
References
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8. Datar, S. M., Feltham, G. A., & Hughes, J. S. (1991). The role of audits and audit quality in valuing new issues. Journal of accounting and Economics, 14(1), 3-49.
9. DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.
10. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
11. Gwilliam, D., & Jackson, R. H. (2008, September). Fair value in financial reporting: Problems and pitfalls in practice: A case study analysis of the use of fair valuation at Enron. In Accounting Forum (Vol. 32, No. 3, pp. 240-259). No longer published by Elsevier.
12. Hoang, T. T., & Nguyen, T. H. (2020). The challenges of IFRS adoption in Vietnam: An exploratory study. Journal of International Accounting Research, 19(3), 89-107. https://doi.org/10.2308/jiar-2020-0414
13. Hung, P. H. (2023). The influence of cultural, legal and institutional factors on auditors' roles, responsibilities and perceptions of audit quality. European Journal of Theoretical and Applied Sciences, 1(5), 1131-1145. https://doi.org/10.59324/ejtas.2023.1(5).99
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15. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360
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17. Le, H. T., & Nguyen, T. M. (2023). Market characteristics and valuation challenges in Vietnam's corporate restructuring landscape. Journal of Asian Business Studies, 18(2), 145-163. https://doi.org/10.1108/JABS-06-2022-0184
18. Le, H. T., & Pham, D. H. (2019). Corporate restructuring and economic performance in Vietnam: A case study approach. Asian Economic and Financial Review, 9(3), 234-251. https://doi.org/10.18488/journal.aefr.2019.93.234.251
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25. Painter, M. (2003). The politics of economic restructuring in Vietnam: The case of state-owned enterprise "reform". Contemporary Southeast Asia: A Journal of International and Strategic Affairs, 25(1), 20-43.
26. Pham, H. H. (2022). Factors Affecting Audit Quality: Experimental Research in Vietnam. NeuroQuantology, 20(8), 4927. https://doi.org/10.14704/nq.2022.20.8.NQ44518
27. Rosenbaum, J., & Pearl, J. (2013). Investment banking: Valuation, leveraged buyouts, and mergers & acquisitions (2nd ed.). Wiley.
28. Ruigrok, W., Pettigrew, A., Peck, S., & Whittington, R. (1999). Corporate restructuring and new forms of organizing: Evidence from Europe. MIR: Management International Review, 41-64.
29. Saudagaran, S. M., & Diga, J. G. (1997). Accounting regulation in ASEAN: A choice between the global and regional paradigms of harmonization. Journal of International Financial Management & Accounting, 8(1), 1-32. https://doi.org/10.1111/1467-646X.00015
30. Schryen, G. (2013). Revisiting IS business value research: what we already know, what we still need to know, and how we can get there. European Journal of Information Systems, 22(2), 139-169. https://doi.org/10.1057/ejis.2012.45
31. Tran, L. P. (2020). Corporate insolvency and restructuring in Vietnam: Emerging trends and challenges. Journal of Asian Business and Economic Studies, 27(2), 189-203.
32. World Bank. (2020). Vietnam financial sector assessment and recommendations. World Bank Report.

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Do, T. V. D., Nguyen, T. T. N., & Pham, H. H. (2025). Auditors’ role in valuation practices during corporate restructuring in Vietnam: A qualitative insight. Multidisciplinary Science Journal, 7(9), 2025453. https://doi.org/10.31893/multiscience.2025453

[1] Alfraih, M. M. (2016). The role of audit quality in firm valuation: Evidence from an emerging capital market with a joint audit requirement. International Journal of Law and Management, 58(5), 575-598.

[2] Altman, E. I., & Hotchkiss, E. (2010). Corporate financial distress and bankruptcy: Predict and avoid bankruptcy, analyze and invest in distressed debt (3rd ed.). Wiley.

[3] Bowman, E. H., & Singh, H. (1993). Corporate restructuring: Reconfiguring the firm. Strategic Management Journal, 14(S1), 5-14.

[4] Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa

[5] Damodaran, A. (2009). The dark side of valuation: Valuing young, distressed, and complex businesses. Ft Press.

[6] Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. John Wiley and Sons.

[7] Dang, H. N., Vu, V. T. T., Ngo, X. T., & Hoang, H. T. V. (2019). Study the impact of growth, firm size, capital structure, and profitability on enterprise value: Evidence of enterprises in Vietnam. Journal of Corporate Accounting & Finance, 30(1), 144-160.

[8] Datar, S. M., Feltham, G. A., & Hughes, J. S. (1991). The role of audits and audit quality in valuing new issues. Journal of accounting and Economics, 14(1), 3-49.

[9] DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.

[10] DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.

[11] Gwilliam, D., & Jackson, R. H. (2008, September). Fair value in financial reporting: Problems and pitfalls in practice: A case study analysis of the use of fair valuation at Enron. In Accounting Forum (Vol. 32, No. 3, pp. 240-259). No longer published by Elsevier.

[12] Hoang, T. T., & Nguyen, T. H. (2020). The challenges of IFRS adoption in Vietnam: An exploratory study. Journal of International Accounting Research, 19(3), 89-107. https://doi.org/10.2308/jiar-2020-0414

[13] Hung, P. H. (2023). The influence of cultural, legal and institutional factors on auditors' roles, responsibilities and perceptions of audit quality. European Journal of Theoretical and Applied Sciences, 1(5), 1131-1145. https://doi.org/10.59324/ejtas.2023.1(5).99

[14] International Federation of Accountants (IFAC). (2018). International Code of Ethics for Professional Accountants.

[15] Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360

[16] Koller, T., Goedhart, M., & Wessels, D. (2010). Valuation: Measuring and managing the value of companies (7th ed.). Wiley.

[17] Le, H. T., & Nguyen, T. M. (2023). Market characteristics and valuation challenges in Vietnam's corporate restructuring landscape. Journal of Asian Business Studies, 18(2), 145-163. https://doi.org/10.1108/JABS-06-2022-0184

[18] Le, H. T., & Pham, D. H. (2019). Corporate restructuring and economic performance in Vietnam: A case study approach. Asian Economic and Financial Review, 9(3), 234-251. https://doi.org/10.18488/journal.aefr.2019.93.234.251

[19] Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative data analysis: A methods sourcebook (3rd ed.). SAGE Publications.

[20] Nguyen, H. T., & Le, M. T. (2021). Corporate governance and firm performance: An empirical study of listed companies in Vietnam. Journal of Asian Business and Economic Studies, 28(2), 100-115. https://doi.org/10.1108/JABES-03-2020-0023

[21] Nguyen, P. Q. (2020). The influence of cultural factors on corporate governance in Vietnam: A qualitative study. Corporate Governance: The International Journal of Business in Society, 20(4), 674-689. https://doi.org/10.1108/CG-01-2020-0021

[22] Nguyen, T. K., Sun, S., & Lee, S. H. (2017). Mergers and acquisitions in Vietnam: The effects of ownership structure on performance. Asian Economic Journal, 31(1), 45-64.

[23] Nguyen, V. K., & Le, P. H. (2022). M&A trends and activities in Vietnam: A post-pandemic analysis. Journal of Economics and Development, 24(2), 168-182. https://doi.org/10.1108/JED-03-2022-0042

[24] Nowell, L. S., Norris, J. M., White, D. E., & Moules, N. J. (2017). Thematic analysis: Striving to meet the trustworthiness criteria. International Journal of Qualitative Methods, 16(1). https://doi.org/10.1177/1609406917733847

[25] Painter, M. (2003). The politics of economic restructuring in Vietnam: The case of state-owned enterprise "reform". Contemporary Southeast Asia: A Journal of International and Strategic Affairs, 25(1), 20-43.

[26] Pham, H. H. (2022). Factors Affecting Audit Quality: Experimental Research in Vietnam. NeuroQuantology, 20(8), 4927. https://doi.org/10.14704/nq.2022.20.8.NQ44518

[27] Rosenbaum, J., & Pearl, J. (2013). Investment banking: Valuation, leveraged buyouts, and mergers & acquisitions (2nd ed.). Wiley.

[28] Ruigrok, W., Pettigrew, A., Peck, S., & Whittington, R. (1999). Corporate restructuring and new forms of organizing: Evidence from Europe. MIR: Management International Review, 41-64.

[29] Saudagaran, S. M., & Diga, J. G. (1997). Accounting regulation in ASEAN: A choice between the global and regional paradigms of harmonization. Journal of International Financial Management & Accounting, 8(1), 1-32. https://doi.org/10.1111/1467-646X.00015

[30] Schryen, G. (2013). Revisiting IS business value research: what we already know, what we still need to know, and how we can get there. European Journal of Information Systems, 22(2), 139-169. https://doi.org/10.1057/ejis.2012.45

[31] Tran, L. P. (2020). Corporate insolvency and restructuring in Vietnam: Emerging trends and challenges. Journal of Asian Business and Economic Studies, 27(2), 189-203.

[32] World Bank. (2020). Vietnam financial sector assessment and recommendations. World Bank Report.

Abstract

References

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