Understanding fair value in public asset valuation: The role of regulatory and organizational factors in an emerging market context

Abstract

This study examines the determinants of managerial awareness of fair value (FV) application in public asset valuation within public non-business units (PNBUs) in Vietnam, an emerging economy undergoing public sector accounting reform. Drawing on institutional theory (North, 2012), agency theory (Jensen & Meckling, 1976), and the International Accounting Standards Board (IASB) conceptual framework, the study develops a model incorporating regulatory, organizational, and informational factors, including legal regulations, autonomy, usefulness and reliability of accounting information, cost-benefit considerations, and accounting staff competence. Using survey data from 150 managers and chief accountants, the study employs Cronbach’s alpha, exploratory factor analysis (EFA), and multiple regression. The results indicate that all factors positively and significantly influence managerial awareness, with information reliability, cost-benefit considerations, and staff competence exerting the strongest effects. The model explains 53.2% of the variation in awareness. The study contributes to the limited empirical literature on FV awareness in the public sector of emerging economies by highlighting the role of regulatory frameworks alongside organizational and informational conditions. The findings suggest that strengthening regulatory clarity, enhancing professional capacity, and improving information systems are essential for promoting effective FV adoption and improving transparency and accountability in public asset valuation.