Abstract
This study aims to examine the effect of corporate governance characteristics such as board size, independence of the board of commissioners, the size of the audit committee, audit committee independence, audit committee competence, and concentration of stock ownership on audit report lag. In addition, this study also tests three control variables such as firm size, type of auditor, and profitability. One hundred and fiftysix sample of banking companies listed in the Indonesia Stock Exchange during the 6 years of the study were obtained by using purposive sampling technique. The results of multiple regression analysis proved that only board size variable that affects the audit report lag, while the other three control variables has no significant effect on audit report lag. This result suggested that auditors perform the audit more efficiently and effectively, for BAPEPAM-LK and Bank Indonesia as regulator to review again the regulation about corporate governance, for the future researcher to be reference in developing research.
Highlights
Kieso (2010:47) explained that information is considered timely if the information is available before it loses its ability to influence the decisions of the users
The criteria used in selecting the samples of this study are as follows: (1) the banking companies listed in Indonesia Stock Exchange from 2007 to 2012 respectively, (2) the banking companies that convey and publish financial statements respectively from 2007 to 2012, (3) the banking companies that publish financial statements ending on December 31
Profitability in this study is calculated by return on assets (ROA) which is measured from the net profit after tax divided by total assets of financial year end of each sample company
Summary
Kieso (2010:47) explained that information is considered timely if the information is available before it loses its ability to influence the decisions of the users. Based on the annual report of the Bapepam-LK (Financial Institutions And Capital Market Supervisory Agency) in 2012, some companies were still late to report their financial statements to Bapepam-LK the GCG guidelines have been updated This has prompted the researcher to examine the effect of good corporate governance on audit report lag. The sample banking companies listed on the Indonesia Stock Exchange (IDX) are used in this study because this type of company has uniqueness as follows; 1) Bowing to the two institutions; Bank Indonesia and Bapepam-LK, 2) Classified in the financial comapany that has an audit report lag shorter than other type of company, such as manufacturing companies It is based on the research conducted by Cullinan (2003), CheAhmad and Abidin (2008), Nahumury (2010), and Ahmed and Hossain (2010)
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