EFFECT OF GOOD CORPORATE GOVERNANCE, FINANCIAL DISTRESS, AND FINANCIAL PERFORMANCE ON TIMELINESS OF FINANCIAL STATEMENTS REPORTING
Abstract
This study was aimed to test empirically whether Good Corporate Governance (audit committee and managerial ownership), financial distress, and financial performance (profitability and liquidity) affect the timeliness of financial reporting on go public companies listed in Indonesian Stock Exchange. The data were the annual financial statements of companies listed in Indonesia Stock Exchange (IDX). Slovin’s formula was used to select the sample of 220 firm-years from 2011 to 2012. The data were analysed using logistic regression analysis. The results indicated that p-values of audit committee (AC), financial distress (FD), and liquidity (CR) ≤ 0.05. These meant that audit committee (AC), financial distress (FD), and liquidity (CR) significantly affected the timeliness of financial statements reporting. Whereas, the logistic regression analysis of managerial ownership (MO) and profitability (ROA) indicated p-value ≥ 0.05, meaning that the two factors did not significantly affect the timeliness of financial statements of the go public companies.
Keyword: Timeliness, Audit Committee, Managerial Ownership, Financial
Distress, Profitability, Liquidity
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