DETERMINANTS OF AUDIT REPORT LAG: EFFECT OF CORPORATE GOVERNANCE IN MALAYSIAN CONSTRUCTION LISTED COMPANIES

  • Syahmi Akmal Kusin
  • Mohd Halim Kadri Universiti Teknologi MARA

Abstract

Timeliness of audited financial reports is pondered to be a crucial and important factor affecting the usefulness and quality of information that available to its users. This study examines corporate governance to audit report lag in Malaysian construction listed companies. Construction industry in Malaysia is one of the most challenging and dynamic industry. Agency theory is relevant theory to this study as it explains the corporate governance by which of their functions as an oversight mechanism to lessen agency problems. This study particularly examined the effect of board size, board diversity, board meeting, CEO duality, audit committee size and type of auditor on audit report lag. The study employed longitudinal survey data covering a three-year’s period from 2015 to 2017. The study sample comprised 138 Malaysian construction listed companies from Bursa Malaysia. Data were extracted from annual report of sample companies that downloaded from Bursa Malaysia website. Regression analysis was performed to examine the determinants of audit report lag. The results demonstrated that board size, board diversity and auditor type have a significant relationship with the audit report lag. Meanwhile, board meeting, CEO duality and audit committee size do not have significant relationship with audit report lag. This study contributing to the literature on corporate governance and auditing. Particular explanations of the findings, implication, limitation and recommendation for future research are highlighted
Published
Dec 31, 2020
How to Cite
KUSIN, Syahmi Akmal; KADRI, Mohd Halim. DETERMINANTS OF AUDIT REPORT LAG: EFFECT OF CORPORATE GOVERNANCE IN MALAYSIAN CONSTRUCTION LISTED COMPANIES. Asia-Pacific Management Accounting Journal, [S.l.], v. 15, n. 3, p. 109-140, dec. 2020. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/1215>. Date accessed: 12 apr. 2021. doi: http://dx.doi.org/10.24191/apmaj.v15i3.1215.