Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia

This study aims to investigate the relationship between the board of directors, audit committee and auditor characteristics, and timeliness of financial reporting in listed companies in Indonesia. Cohen et al.(2004) suggested that the board of directors, management, and internal and external auditor...

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Main Author:	Zaitul,
Format:	Thesis
Language:	eng
Published:	2010
Subjects:	HF5601-5689 Accounting
Online Access:	https://etd.uum.edu.my/2405/1/Zaitul.pdf
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id	my-uum-etd.2405
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng
advisor	Fadzil, Faudziah Hanim
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Zaitul, , Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia
description	This study aims to investigate the relationship between the board of directors, audit committee and auditor characteristics, and timeliness of financial reporting in listed companies in Indonesia. Cohen et al.(2004) suggested that the board of directors, management, and internal and external auditors could influence the financial reporting quality, including timeliness of financial reporting. In addition, there is a lack of studies in countries in which the board system is a two-tier board system, such as is practiced in Indonesia. This study uses 218 companies listed on the Indonesian Stock Market from 2006 to 2008 (n=654). Thus, the analysis method used is panel data analysis. Audit report lag and management report lag models are used in this study. The results show that several board characteristics affect the timeliness of financial reporting. Specially, board sizes, board shareholding, board multiple directorship and length of service are significantly related to audit report lag. Further, board composition, board size, board shareholding, board expertise and knowledge, age of board members, and length of service of board members is significantly related to the management report lag. In addition, the audit committee characteristics also affect the timeliness of financial reporting. The significant variables are audit committee financial expertise and audit committee size. Other findings show that internal audit existence has a significant relationship with the audit report lag whereas the external auditor opinion has a significant relationship with the management report lag. There are three control variables: return on assets, company size and company leverage. Return on assets and company size are significantly related to the audit report lag, whereas only return on asset is associated with the management report lag.
format	Thesis
qualification_name	Doctor of Business Administration (DBA)
qualification_level	Doctorate
author	Zaitul, ,
author_facet	Zaitul, ,
author_sort	Zaitul, ,
title	Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia
title_short	Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia
title_full	Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia
title_fullStr	Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia
title_full_unstemmed	Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia
title_sort	board of directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in indonesia
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2405/1/Zaitul.pdf
_version_	1783729364771274752
spelling	my-uum-etd.24052023-08-15T06:39:46Z Board of Directors, audit committee, auditor characteristics and timeliness of financial reporting in listed companies in Indonesia 2010-07-06 Zaitul, , Fadzil, Faudziah Hanim College of Business (COB) College of Business HF5601-5689 Accounting This study aims to investigate the relationship between the board of directors, audit committee and auditor characteristics, and timeliness of financial reporting in listed companies in Indonesia. Cohen et al.(2004) suggested that the board of directors, management, and internal and external auditors could influence the financial reporting quality, including timeliness of financial reporting. In addition, there is a lack of studies in countries in which the board system is a two-tier board system, such as is practiced in Indonesia. This study uses 218 companies listed on the Indonesian Stock Market from 2006 to 2008 (n=654). Thus, the analysis method used is panel data analysis. Audit report lag and management report lag models are used in this study. The results show that several board characteristics affect the timeliness of financial reporting. Specially, board sizes, board shareholding, board multiple directorship and length of service are significantly related to audit report lag. Further, board composition, board size, board shareholding, board expertise and knowledge, age of board members, and length of service of board members is significantly related to the management report lag. In addition, the audit committee characteristics also affect the timeliness of financial reporting. The significant variables are audit committee financial expertise and audit committee size. Other findings show that internal audit existence has a significant relationship with the audit report lag whereas the external auditor opinion has a significant relationship with the management report lag. There are three control variables: return on assets, company size and company leverage. Return on assets and company size are significantly related to the audit report lag, whereas only return on asset is associated with the management report lag. 2010-07 Thesis https://etd.uum.edu.my/2405/ https://etd.uum.edu.my/2405/1/Zaitul.pdf text eng public http://sierra.uum.edu.my/record=b1222268~S1 dba dba Universiti Utara Malaysia Abbott, L., J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice & Theory, 23(1), 69-87. Abdelsalam, 0., & El-Masry, A. (2008). The impact of board independence and ownership structure on the timeliness of corporate internet reporting of Irishlisted companies. Managerial Finance, 34(12), 907-918. Abdelsalam, 0., & Street, D. L. (2007). Corporate governance and the timeliness of corporate internet reporting by UK listed companies. 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