Determinants Audit Report Delay and Its Effects on Investor Reaction in Public Companies in Indonesia

Economics and Business Quarterly Reviews, Vol.6 No.1 (2023)

17 Pages Posted: 18 Mar 2023

See all articles by Krishna Kamil

Krishna Kamil

Sekolah Tinggi Ilmu Ekonomi Indonesia (STEI)

Tri Widyastuti

Universitas Bhayangkara Jakarta Raya

Nurmala Ahmar

Universitas Pancasila

Zulkifli

Universitas Pancasila

Date Written: February 21, 2023

Abstract

The audit report delay cause problems of performance appraisal for all audited companies following the investors’ response negatively to the audited report. The consequences of these report delay make distrust of stakeholders, so the delay of audited report need to be minimized in order for all companies to be trusted in financial statement reports. The aim of this research is to explore the determinants of audit reporting delay in Indonesian stock exchange, especially on development boards. The exploration is then continued by examining the effects of audit report delay in order to respond to investors' negative impressions. Method of research used in this research is the exposure of facts on testing the application of GCG, financial performance. The factors used in this research were audit report delay and auditor’s opinion, investor response proxy by share price. The outcome of the research indicates that GCG and legal compliance pressures have a negative and significant effect on audit reporting delay, while financial performance has a positive and significant impact on audit reporting delay, moderating factors such as legal compliance pressures and KAP size has no effect on audit reporting delay. Audit reporting delay and independent auditor reports affect investor response, while legal compliance pressure and financial performance through audit reporting delay affects investor response.

Keywords: Audit Reporting Delay, Legal Compliance Pressure, Restatement, Company Size, Number of Subsidiaries, Audit Firm Size, Auditor Opinion, Investor Reaction

Suggested Citation

Kamil, Krishna and Widyastuti, Tri and Ahmar, Nurmala and , Zulkifli, Determinants Audit Report Delay and Its Effects on Investor Reaction in Public Companies in Indonesia (February 21, 2023). Economics and Business Quarterly Reviews, Vol.6 No.1 (2023), Available at SSRN: https://ssrn.com/abstract=4365874

Krishna Kamil (Contact Author)

Sekolah Tinggi Ilmu Ekonomi Indonesia (STEI)

Tri Widyastuti

Universitas Bhayangkara Jakarta Raya

Nurmala Ahmar

Universitas Pancasila

Zulkifli

Universitas Pancasila

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