Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Information Content and Determinants of Timeliness Financial Reporting: Evidence From an Emerging Market

Author(s): Evi Rahmawati

This paper reports the findings of a study on information content and the determinants of timeliness of corporate report of manufacturing companies listed on the Indonesian Stock Exchange. The empirical analysis reveals that the significant determinants of timeliness of annual reporting in Indonesia are company size, earnings quality and audit factors (big 4/non big 4 audit firms and audit opinion). Profitability, capital structure and accounting complexity are insignificant determinants of timeliness of financial reporting in Indonesia, though these factors have been found to be significant determinants of financial reporting in other countries. Furthermore, no evidence was found to support the association between information content of financial reports and its timeliness. This paper reports the findings of a study on information content and the determinants of timeliness of corporate report of manufacturing companies listed on the Indonesian Stock Exchange. The empirical analysis reveals that the significant determinants of timeliness of annual reporting in Indonesia are company size, earnings quality and audit factors (big 4/non big 4 audit firms and audit opinion). Profitability, capital structure and accounting complexity are insignificant determinants of timeliness of financial reporting in Indonesia, though these factors have been found to be significant determinants of financial reporting in other countries. Furthermore, no evidence was found to support the association between information content of financial reports and its timeliness.