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Article
Publication date: 7 December 2020

Marwa Moalla, Bassem Salhi and Anis Jarboui

This study empirically tests a comprehensive set of relevant factors to explain environmental reporting quality. This study aims to understand whether environmental…

Abstract

Purpose

This study empirically tests a comprehensive set of relevant factors to explain environmental reporting quality. This study aims to understand whether environmental assurance has a direct effect on “environmental reporting quality”. In addition, this study also aims to examine the relationship between corporate governance and the quality of environmental reporting as measured by voluntary and timely reporting.

Design/methodology/approach

A number of econometric techniques are used including panel data specifications using a sample of French listed companies in SBF120 for the period 2012–2017.

Findings

The results demonstrate that the presence of an environmental audit committee and the size of the environmental external assurance firm has a significant effect on the level of voluntary reporting of environmental information. The results also reveal that the presence of the environmental audit committee, as well as the corporate social responsibility (CSR) committee, the size of the environmental external assurance and corporate governance index, affect the timely environmental reporting.

Research limitations/implications

This study helps all market participants to more comprehensively evaluate the quality of environmental reporting in the French context and highlights whether various factors could affect the quality of the environmental information disclosed using a multi-theoretical framework.

Originality/value

This paper fills the gap in the literature by highlighting an unexplored field of literature about the quality of environmental reporting by linking on the division of the quality of environmental information reporting into sub-dimensions (voluntary reporting and timely reporting) in the French context. To the knowledge, no empirical study has been done on the timely reporting of environmental information in the French context or other contexts. The originality of the work consists of the fact that it is one of the first works that deal with the relationship between environmental external assurance, corporate governance and the quality of environmental reporting.

Details

Social Responsibility Journal, vol. 17 no. 7
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 4 August 2021

Fei Song and Jianan Zhou

This paper addresses the role of principles-based accounting standards as a potential mechanism for reducing firms' time delay of annual reporting disclosure while…

Abstract

Purpose

This paper addresses the role of principles-based accounting standards as a potential mechanism for reducing firms' time delay of annual reporting disclosure while improving the timeliness of accounting information. The paper also contributes to the existing literature by addressing the mediating effects of the financial reporting complexity and the audit workload on the link between principles-based accounting standards and the time delay of annual reporting disclosure.

Design/methodology/approach

The focus is placed on an unbalanced panel of 20,943 samples over the period of 2007–2017.

Findings

The results show that the more principles-based the accounting standards are, the lower the time delay of annual reporting disclosure is, and the timelier the disclosure of accounting information is. The relationship between the two is more significant especially in the first two months after the end of the fiscal year. The findings are all robust after controlling for a series of sensitivity checks and endogenous concerns. From the mediating effect results, the authors find that principles-based accounting standards decrease the financial reporting complexity and the audit workload which in turn can help lower time delay of annual reporting disclosure. In addition, the negative effect of principles-based accounting standards on the time delay of annual reporting disclosure is more significant in the case that the company has “good news” including with no losses and receiving the standard auditing opinions. The results confirm the law of “good news announces early, bad news announces late.” Furthermore, the moderating effect results show that the higher the economic policy uncertainty index and the legal environment index, the lower the benefit of principles-based accounting standards to the timeliness of annual reports. The results of the economic consequences of timeliness suggest that the timely disclosure of accounting reporting will bring greater market reaction and contain more information, and the information of companies that disclose annual reports timely are more transparent.

Originality/value

This paper studies the impact of accounting standards on the timeliness of annual report disclosure, which enriches the literature in the field of macro policies and micro-enterprise behaviors.

Details

Asian Review of Accounting, vol. 29 no. 3
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 15 August 2022

Erekle Pirveli

This study aims to examine the timing of corporate disclosure in the context of Georgia, an emerging market where a recent reform of corporate financial transparency…

Abstract

Purpose

This study aims to examine the timing of corporate disclosure in the context of Georgia, an emerging market where a recent reform of corporate financial transparency mandated about 80,000 private sector entities to publicly disclose their annual financial statements.

Design/methodology/approach

The main analysis covers more than 4,000 large, medium, small and micro private sector entities, for which the data is obtained from the Ministry of Finance of Georgia. This paper builds an empirical model of logit/probit regression, with industry fixed and random effects to investigate the drivers of the corporate disclosure timing.

Findings

Findings suggest that the mean reporting time lag is 279 days after the fiscal year-end, that is nine days after the statutory deadline. Almost one-third (30%) of the entities miss the nine-month statutory deadline, while the timely filers almost unexceptionally file immediately before the deadline. Multivariate tests reveal that voluntarily filing entities completed the process significantly faster than those mandated to do so; audited financial statements take more time to be filed, whereas those with unqualified audit opinion or audited by large/international audit firms are filed faster than their counterparts. The author concludes that despite the overall high filing rates, the timing of corporate disclosure is not (yet) efficiently enforced in practice (but is progressing over time), whereas regulatory incentives prevail over market incentives among the timely filers.

Originality/value

To the best of the author’s knowledge, this is the first study that explores corporate disclosure timing incentives in the context of Georgia. This study extends prior literature on the timing of financial information from an emerging country’s private sector perspective, with juxtaposed market and regulatory incentives.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 13 January 2012

Robert W. McGee and Xiaoli Yuan

Timeliness of financial reporting is one of the attributes of good corporate governance identified by the OECD and World Bank. Shareholders and other stakeholders need…

1548

Abstract

Purpose

Timeliness of financial reporting is one of the attributes of good corporate governance identified by the OECD and World Bank. Shareholders and other stakeholders need information while it is still fresh and the more time that passes between year‐end and disclosure, the more stale the information becomes and the less value it has. This paper aims to examine the timeliness of financial reporting in the People's Republic of China and to compare it to timeliness in the USA and the European Union (EU).

Design/methodology/approach

The timeliness of financial reporting was measured by counting the number of days that elapsed between year‐end and the date of the independent auditor's report for Chinese companies listed on the Shanghai Stock Exchange and a selection of public companies in the USA and EU. Results were then compared to determine whether there was a significant difference. This study also compares timeliness data on the basis of audit firm to determine whether companies audited by one of the Big‐4 firms are more timely in their financial reporting than are companies audited by Chinese audit firms.

Findings

The paper finds that Chinese companies took significantly longer to report financial results than either the EU or US companies. EU companies took significantly longer to report financial results than US companies. The vast majority of Chinese company audits were not conducted by the Big‐4 accounting firms.

Practical implications

Companies that are not timely in their financial reporting practices find it more difficult to attract capital. Their corporate governance practices are also seen as less than ideal, which has a negative effect on a company's reputation within the financial community. Thus, Chinese companies that are slow in reporting their financial results may suffer negative consequences in terms of reputation and ability to raise capital, all other things being equal.

Originality/value

This paper is the first to compare the timeliness of financial reporting for the People's Republic of China, the USA and the European Union.

Details

Journal of Asia Business Studies, vol. 6 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 1 January 2002

ALISTAIR M. BROWN and GREG TOWER

Three reporting models — Traditional, Western‐narrow and Western‐broad — are scrutinised to delineate the basis of accounting practices for the Pacific Island Countries'…

Abstract

Three reporting models — Traditional, Western‐narrow and Western‐broad — are scrutinised to delineate the basis of accounting practices for the Pacific Island Countries' (PIC) entities for the years ending 1997–1999. Evidence is obtained about the filing of reports; timeliness of reports; and disclosure patterns. Patterns are measured via examination of twenty Aggregated Accounting Disclosures (AAD) items and sub‐indices. A significant number of entities completely fail to generate annual reports, or are several years behind the reporting cycle or are unwilling to disseminate their reports. The reporting patterns for PIC entities showed an overall AAD disclosure trend of 52% with specific patterns being 76% of Core Statement Accounting (CSA), 42% Financial Related Accounting (FRA) and 40% Non‐financial Related Accounting (NRA) over the three years. The lack of current annual reports and timely reports (at least 50%) fits much more with the Traditional model than with either Western model.

Details

Pacific Accounting Review, vol. 14 no. 1
Type: Research Article
ISSN: 0114-0582

Article
Publication date: 25 July 2018

Ben Kwame Agyei-Mensah

The purpose of this paper is to investigate selected corporate governance attributes and financial reporting lag and their impact on financial performance of listed firms in Ghana.

1506

Abstract

Purpose

The purpose of this paper is to investigate selected corporate governance attributes and financial reporting lag and their impact on financial performance of listed firms in Ghana.

Design/methodology/approach

The study uses 90 firm-year data for the period 2012–2014 for firms listed on the GSE. Each annual report was individually examined and coded to obtain the financial reporting lag. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis, which forms the main data analysis.

Findings

The descriptive statistics indicate that over the three years, the mean value of timeliness of financial reporting (ARL) is 86 days (SD 21 days), minimum is 55 days and maximum is 173 days. The regression analysis results indicate that financial reporting lag has a negative statistically significant relationship with firm performance. This negative sign indicates that when financial performances of companies are high (good news), companies have the tendency to disclose this situation early to the public.

Practical implications

Firms that are not timely in the financial reporting practices will find it difficult to attract capital as the delay will affect their reputation.

Originality/value

This study is one of the few to measure financial reporting lag and its impact on firm financial performance in Sub-Saharan Africa.

Details

African Journal of Economic and Management Studies, vol. 9 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 1 May 2019

Saeed Rabea Baatwah, Zalailah Salleh and Jenny Stewart

The purpose of this paper is to investigate whether the characteristics of the audit committee (AC) chair affect audit report timeliness. In particular, the direct…

1392

Abstract

Purpose

The purpose of this paper is to investigate whether the characteristics of the audit committee (AC) chair affect audit report timeliness. In particular, the direct association between AC chair accounting expertise and audit report delay, and the moderating effect of other characteristics of AC chair on this association are examined.

Design/methodology/approach

To achieve the purpose of this study, the characteristics examined by this study are AC chair expertise, shareholding, tenure and multiple directorships. Furthermore, a sample of Malaysian companies during the period 2005–2011 and the fixed effects panel data method are utilized.

Findings

The results suggest that an AC chair with accounting expertise is associated with a reduction in audit delay. The reduction is more obvious when the chair holds shares in the company, but is weakened by longer tenure and multiple directorships. These results are robust after conducting several robust tests. Using mediating analysis, the authors also document that an AC chair with accounting expertise can enhance the timeliness of audit reports even when the quality of financial reporting is lower. The reported result is supported by additional analysis that finds that AC chairs with accounting expertise and AC chairs with accounting expertise and shareholding are significantly associated with shorter abnormal audit delay.

Originality/value

This study provides comprehensive analysis concerning the association between AC chair and audit report timeliness using a unique setting. It is among the limited evidence that reports the moderating effect of AC chair characteristics on the role of such chair on audit report timeliness.

Details

Asian Review of Accounting, vol. 27 no. 2
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 5 October 2015

Saeed Rabea Baatwah, Zalailah Salleh and Norsiah Ahmad

This paper aims to hypothesise that demographic characteristics of managers play a significant role in performing their duties amongst which is financial reporting. This…

3863

Abstract

Purpose

This paper aims to hypothesise that demographic characteristics of managers play a significant role in performing their duties amongst which is financial reporting. This study aims to examine whether CEO characteristics, namely, tenure and financial expertise, are associated with audit report timeliness.

Design/methodology/approach

Data from companies listed on the Oman capital market between 2007 and 2011 and three proxies for audit report timeliness are used.

Findings

CEO tenure and CEOs with financial expertise are reported to be associated with timely audit reports. Supplementary tests also confirmed this result. In addition, it is suggested and documented that there is an interaction effect between CEO tenure and financial expertise concerning the timeliness of audit reports. The use of a two-stage least square analysis also supported the main results.

Research limitations/implications

Hypotheses were tested using data from Oman with a relatively small sample size. Therefore, only a few characteristics of the CEO were considered and a more sophisticated approach of testing managers’ effect on company policies was unable to be used. In addition, the generalisability of the study findings should be made carefully.

Originality/value

This paper differs from prior studies, in that it extends the audit report timeliness literature by examining whether the CEO tenure and CEOs with financial expertise are associated with audit report timeliness. Findings demonstrate that CEO characteristics are important factors for a timely audit report.

Details

Managerial Auditing Journal, vol. 30 no. 8/9
Type: Research Article
ISSN: 0268-6902

Keywords

Book part
Publication date: 1 January 2008

Venancio Tauringana, Martin Francis Kyeyune and Peter John Opio

Conceptual PaperPurpose of paper – The study investigates the association between corporate governance mechanisms (proportion of finance experts on the audit committee…

Abstract

Conceptual Paper

Purpose of paper – The study investigates the association between corporate governance mechanisms (proportion of finance experts on the audit committee, PFAC; frequency of board meetings, FBMG and proportion of non-executive directors, PNED), dual language reporting (DULR) (in English and Swahili) and timeliness of annual reports (TIME) of companies listed on the Nairobi Stock Exchange (NSE) in Kenya.

Design/methodology/approach – The data for the analysis is gathered from annual reports of 36 companies listed on the NSE for two financial years ending in 2005 and 2006. Ordinary least square (OLS) is used to determine the association between the corporate governance mechanisms, DULR and TIME. Company size (SIZE), gearing (GEAR), profitability (PROF) and industry (INDS) are used as control variables.

Findings – The findings suggest that there is a significant negative relationship between corporate governance mechanisms (PFAC and FBMG), DURL and TIME. Consistent with extant research, the study also found that SIZE and INDS are significantly associated with TIME. No significant association is found between PNED, GEAR, PROF and TIME.

Research limitations/implications – The findings of the research will help Kenyan policy makers and practitioners in formulating corporate governance policies. However our research is limited, among others, because it focuses on only companies listed on the NSE. The results may therefore not be representative of all companies operating in Kenya.

Originality/Value of paper – The value of the paper lies in that the results provide, for the first time, evidence of the relationship between corporate governance mechanisms (PFAC, FBMG and PNED), DURL and timeliness of the annual reports.

Details

Corporate Governance in Less Developed and Emerging Economies
Type: Book
ISBN: 978-1-84855-252-4

Article
Publication date: 1 March 2007

Charles Carslaw, Richard Mason and John R. Mills

We examined 36,367 school district audit results from the Federal Audit Clearinghouse data base for the five-year period from 1998 to 2002. We found that school districts…

Abstract

We examined 36,367 school district audit results from the Federal Audit Clearinghouse data base for the five-year period from 1998 to 2002. We found that school districts have a high level of internal control and grant compliance findings. School districts are slow in filing their financial reports and delayed financial reports are positively associated with larger district size, government auditors, sole practitioner auditors, and problems with internal controls and qualified reports. We found a negative association between audit delay and a low-risk classification. Continuing material weaknesses in financial reporting and grant compliance could result in funding losses for those districts not meeting proper financial reporting standards. Timelier reporting would identify problem areas sooner and promote remedial action and greater compliance.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 19 no. 3
Type: Research Article
ISSN: 1096-3367

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