Academy of Accounting and Financial Studies Journal Volume 22, Issue 2, 2018 1 1528-2635-22-2-198 INVESTIGATION OF THE IMPACT OF FINANCIAL INFORMATION ON STOCK PRICES: THE CASE OF VIETNAM Ngoc Hung Dang, Hanoi University of Industry, Vietnam Manh Dung Tran, National Economics University, Vietnam Thi Lan Anh Nguyen, Hanoi University of Industry, Vietnam ABSTRACT This research is conducted for investigating the impact of financial information on stock prices of listed firms on Vietnam Stock Exchange. Data were collected from 273 large listed firms for the period from 2006 to 2016. By using the multiple regressions, the relationship between determinants including earnings per share, book value, cash flow from operating activities, firm size and stock prices is investigated. The results show that four determinants have positive relationships with stock prices with the explanation level of 48.1%. The impact of financial information on stock prices is getting stronger and stronger in the years of 2015 and 2016 with the explanation levels above 60%. Keywords: Relevance of Financial Information, Stock Prices, Vietnam. INTRODUCTION Financial statements are prepared for providing useful financial information about financial position, operational result, changes in equity, cash flows. Internationally, financial statements are formed for the sake of financial statements users including management and are basis for users to consider in making economic decisions. Under IAS 1, the qualitative characteristics of financial statements include understandability, relevance, reliability and comparability. In which, relevance is understood as relevance to the needs of the users and this may involve reporting particularly relevant information or information whose omission or misstatement could influence the economic decisions of users (IASB, 2010). Accounting information in this research is based on data from financial statements. The financial information such as borrowing rate, economic growth and inflation is out of dimension of this study. According to Maines & Wahlen (2006), financial information is regarded as a surrogate of economic structure representing in trade deals of an entity, a transaction and an event. This means that financial information is not only for management but also for insiders and outsiders as well. Financial information is related to an accounting system and used internally and externally for satisfying diverse needs of users. Stock price is influenced by many determinants including financial information presented in the financial statements. In developed stock exchanges, the relationship between accounting information and stock price has been investigated. Ball & Brown (1968) conducted empirical research of relationship between financial information and stock price on New York Stock Exchange and found that stock price was influenced by profits. Based on the model of Ohlson (1995), many empirical studies have been conducted for testing this relationship in different contexts. Collin, Maydew & Weiss (1997) concluded that based on the model of Ohlson (1995),