Audit Reports Latency in Manufacturing Sub Sector Companies Listed in IDX (2019)

Judith Tagal Gallena Sinaga

doi:10.35974/isc.v11i3.3592

Authors

Judith Tagal Gallena Sinaga Universitas Advent Indonesia

https://doi.org/10.35974/isc.v11i3.3592

Keywords:

latency of audit reports, stand-ins for the GCG, analytical techniques

Abstract

The purpose of this study is to examine how the good corporate governance mechanism (GCG) affects the latency of audit reports. The independent commissioner, audit committee, institutional ownership, and management ownership all serve as stand-ins for the GCG. The descriptive method was used with a quantitative approach in this study. The significance test and multivariate regression analysis are the analytical techniques utilized in statistical data processing. With 68 businesses in the research sample, this study focused on manufacturing sub-sector companies listed on the Indonesia Stock Exchange in 2019. The average percentage of managerial ownership held by the company is 18.67%, indicating a relatively small amount. The average institutional ownership percentage held by the corporation is moderate, as indicated by the value of 57.20%. With an independent commissioner ratio of 0.3941, each company's average number of commissioners satisfies the criteria. Every company's average number of audit committees satisfies the criterion, with an audit committee ratio of 3.01. The manufacturing subsector companies listed on the Indonesia Stock Exchange file their financial reports after the deadline set by the Financial Services Authority, as indicated by the average audit report lag days of 97.31. The findings demonstrated that GCG did not significantly affect audit report latency at the same time. Other than insignificantly, audit report latency is not significantly impacted by managerial ownership, institutional ownership, independent commissioners, or audit committees.

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