DOI:

Abstract

Over the last few years, Vietnam has witnessed a very strong growth in its Initial Public Offering market. The total capital in the Vietnamese stock market at the highest point (at the end of 2007) was estimated at US$35 billion, equaling 50% of the GDP. However, among nearly 100,000 joint stock companies in Vietnam (GSO) only 794 ones had their shares listed on stock exchanges (up to May 2011). Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, and provides them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions (Peter C. Brewer, 2005). The purpose of this study is to try to apply management accounting to investigate how Initial Public Offering impacts on the PBTA (Profit before Tax on Assets) of the Vietnamese enterprises by using SPSS statistic method to answer the question of whether a positive impact between the pre- and post-IPO's PBTA in Vietnamese firms exists and provide some decision support for entrepreneurs in planning a public offering sometime in the future. The objectives of this study are (1) to investigate the significant impact of IPO on enterprise's PBTA in the Vietnamese stock market through profit before tax on asset – an management accounting tool, (2) to give suggestions and apply management accounting analysis to encourage non-listed enterprises to progress into an IPO more effectively.

Keywords

Management Accounting ; Initial Public Offering (IPO); Profit Before Tax On Asset; Stock Market; Vietnam.