Evidence on the Determinants of Firm Characteristics and Inventory Accounting Policy Choice: An Empirical Study in Vietnam

This study aims at exploring what firm characteristics influence on the intention or choice of inventory accounting methods of the listed companies on Vietnamese stock market. With an experimental study, the results give evidence that determinants such as firm size, percentage of Board of Director outside the Board of Management and chief accountant inside the Board of Management influenced the choice of inventory accounting methods of the listed companies in Vietnam. The findings show that the choice of inventory accounting methods of industries can be distributed based on specific industry. The weighted average method is often used in industries as minerals, plastic-packaging, and food while the FIFO approach is preferable in telecommunications, service-tourism, and transport-ports-taxi. The specific identification method was used in commerce.