The Effects of Audit Committee, Leverage and Company Size on Timeliness of Financial Reporting

Abstract

This study aims to examine the influence of audit committee, leverage, and firm size on the timeliness of financial reporting. The research focuses on mining companies listed on the Indonesia Stock Exchange from 2015 to 2020. A purposive sampling method was used, resulting in a sample of 234 observations. Logistic regression was used for the analysis. The results indicate that: 1). Leverage has a negative effect on the timeliness of financial reporting; and 2). The audit committee and firm size do not affect the timeliness of financial reporting. The results of this study indicate that the presence of debt can encourage management to submit financial reports in a timely manner. The findings show that the existence of an audit committee does not yet guarantee the timely issuance of financial reports by companies. These findings highlight the need to enhance the role of the audit committee to foster timely financial reporting. The government can minimize delays in financial reporting through oversight by the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX). The role of these institutions is expected to strengthen and enforce financial reporting regulations for companies in Indonesia.