DO COMPANY’S ATTRIBUTES AND AUDIT RELATED FACTORS AFFECT TIMELINESS OF FINANCIAL REPORTING?

Abstract

A useful financial information should have a relevance and faithful representation in order to help the users to achieve their objectives and timeliness is one of the qualitative characteristics to enhance this usefulness of financial information. In Indonesia all public companies are regulated by OJK to publish their audited financial statements regularly with their regulation number Kep-346/BL/2011. Hence, there  are companies that are late in publishing their financial statement. Therefore, this research aims to examine the influence of Company’s Attributes and Audit Related Factors toward Timeliness of Financial Reporting.

This research is done by examining financial statements of 80 companies listed in Indonesia Stock Exchange with 4 years of observation from 2012 – 2015 with total observation of 320 data. The research was done by using panel data with fixed effect model.

The results from hypothesis testing found that all independent variables were simultaneously significant in influencing the dependent variable. Profitability, Audit Opinion and Audit Firm partially gave significant effect in influencing Timeliness of Financial Reporting. However, there was no empirical evidence regarding Size of Company in affecting Timeliness of Financial Reporting.

Keywords: Timeliness of Financial Reporting, Size of Company, Profitability, Audit Opinion, Audit Firm.