Agency cost, audit committee size and gender diversity on financial reporting timeliness
DOI:
https://doi.org/10.33062/ajb.v10i01.83Keywords:
Agency cost, Audit committee size, Auditor’s gender, CFO’s gender, Financial reporting timelinessAbstract
This study aims to explore on the effect of agency cost, audit committee size, gender diversity on financial reporting timeliness. Reporting timeliness plays a crucial part in making decisions. The credibility of financial statements is shown on its timeliness. The impact of audit fee, audit committee size, auditor gender, and Chief Financial Officer (CFO) gender on the promptness of financial reporting among Indonesia Stock Exchange-listed companies is investigated in this study. This study uses a quantitative approach to evaluate the association between these variables and the speed of financial statement disclosure using data gathered from 140 publicly traded companies. The findings show that financial reporting timeliness is significantly improved by both agency cost and audit committee size, indicating that larger audit committees and greater audit investment lead to more effective financial reporting procedures. However, there is no discernible effect of the auditor's and CFO's gender—specifically, their male gender—on the promptness of reporting. The main elements that can improve the accountability and transparency of financial reporting timeliness in developing markets like Indonesia are highlighted in these results for regulators, investors, and corporate governance organizations.
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