Timeliness of corporate annual financial reporting in Indonesian banking industry

Wahyu Murti

doi:10.5267/j.ac.2021.1.003

Abstract

The financial performance of the banking sector globally can be seen on the capital markets of each country. One of the important sources of information in the investment business on the capital market is the financial reports that are provided by every company going public. The objectives of this study are (1) to determine the simultaneous and partial effect of liquidity factors, Debt Equity Ratio, company size on timeliness of financial reporting in the banking sector in Indonesia. (2) to determine what factors are dominant in the timeliness of financial reporting in the banking sector in Indonesia. This research uses secondary data with panel data analysis method. The results show the liquidity variable, Debt Equity Ratio and firm size positively influence on timeliness of financial reporting in the banking sector in Indonesia. Firm Size is the dominant factor that has a significant positive effect on the Timelines Financial Report of the banking sector in Indonesia. The findings of this research are that increasing liquidity, Debt Equity Ratio and Firm Size can increase the Timelines Financial Report of the banking sector in Indonesia. Firm Size as the dominant factor is the attraction and driving force for the Timelines Financial Report banking sector in Indonesia. The research can be used as a reference for future researchers on identifying efforts of the influence of Liquidity, Debt to Equity Ratio, Firm Size and Timelines Report.

Highlights

The banking sector plays an important role for the economic growth of every country
The results showed that the profitability and ownership structure had significant effects on the timeliness of the company's financial reporting, while the quality of auditors and auditor turnover had no effect on the timeliness of financial reporting of manufacturing companies listed on the Indonesia Stock Exchange (Murti, 2017a,b)
The theory used in this paper considers Liquidity, debt to equity ratio and Firm Size as independent variable while Timelines is the dependent variable

Summary

Introduction

The banking sector plays an important role for the economic growth of every country. The financial performance of the banking sector globally can be seen in the capital markets of each country. One of the important sources of information in the investment business in the capital market is the financial reports that are provided publicly traded companies. Financial reports are very useful information for business people in the capital market (Abernathy et al, 2018). For companies that have gone public, several studies have been conducted by researchers and academics before investigating the factors that influence the timeliness of corporate financial reporting using several variables. The results showed that the profitability and ownership structure had significant effects on the timeliness of the company's financial reporting, while the quality of auditors and auditor turnover had no effect on the timeliness of financial reporting of manufacturing companies listed on the Indonesia Stock Exchange (Murti, 2017a,b)

Objectives

Methods

Discussion

Conclusion