A comparative study of the effect of institutional ownership, audit committee, and gender on audit report lag in Indonesia, Malaysia, and Singapore

Abstract

The purpose of this research are to analyst the negative effect of institutional ownership, audit committee and gender to audit report lag of mining company in Indonesia, Malaysia and Singapore for 2012-2016. Gender is proxied by gender of CEO and gender of Committee Audit’s Head. Not only that, the research also analyst the difference mean value of audit report lag in Indonesia, Malaysia and Singapore. This research use random purposive sampling technique because the amount company gap after purposive sampling between three counties are high. Total of population of three countries are 67 companies and mining company which fulfill the criteria of purposive sampling is 43 companies. That are consist of 34 Indonesia’s mining companies, 3 Malaysia’s mining companies and 6 Singapore’s mining companies. The final sample is 13 companies consist of 5 Indonesia’s company, 5 Singapore’s company and 3 Malaysia’s Company. Multiple Linear Regression is used to examine the effect of independent variable to dependent variable, while One Way-Anova is used to examine the difference mean value of audit report lag. The result of this research are institutional ownership have negative effect to audit report lag, while audit committee and gender don’t have effect to audit report lag. Beside that, there is no difference mean value of audit report lag in Indonesia, Malaysia and Singapore because they have same regulation about maximal day of company to publish their financial report.

The Effect of Audit Complexity, Financial Distress and Institutional Ownership on Audit Report Lag

“…Institutional ownership refers to the shares that are held by organizations or other types of institutions such as financial organizations, insurance companies and pension funds, college funding companies, commercial banks, mutual funds, and bank asset management companies. Other types of institutions include government agencies and educational institutions (Al-Malkawi et al, 2012;Frischanita, 2018). According to (Rosalia et al, 2019) said that institutional ownership as the majority shareholder is expected to provide supervision so that it can reduce audit report lag.…”

Factors on Determining Audit Delay: Evidence from Indonesia

“…When it comes to the processing information, men do it selectively but women do it comprehensively whereas women are able to process more detailed information in the context of decision making while men only process a part of the information (Santiani and Muliartha 2018). Frischanita (2018) stated that women are better at processing information than men, so that the presence of women in the audit committee have the ability to improve the quality of financial statement and speed up the work of external auditor because women always want a better insurance service.…”

“…Institutional ownership is a corporate governance tool to monitor and discipline management, especially its relation with the annual report submission (Alfraih 2016). Prior studies by Oktaviani and Ariyanto (2019) and Frischanita (2018) stated that institutional ownership has a negative influence on audit delay. However, prior studies by Alfraih (2016) dan Soebyakto et al (2013) stated that institutional ownership has no influence on audit Proceedings of the 5 th European International Conference on Industrial Engineering and Operations Management Rome, Italy, July 26-28, 2022 © IEOM Society International delay.…”

Characteristic of Auditor Impact to Audit Delay in Company Listed in Bursa Efek Indonesia

“…Khoufi and Khoufi (2017) states that the audit committee size has a significant positive effect on audit delay in Nigeria. However, some research do not show a significant effect between audit committee size on audit reporting delay (Apadore & Mohd Noor, 2013;Setiawan & Nahumury, 2014;Faishal & Hadiprajitno, 2015;Frischanita, 2018).…”

“…The audit committee has an obligation to carry out duties and activities related to accounting, which is required to understand accounting and the problems and risks that will arise in the process (Frischanita, 2018). companies with audit committee members who are less likely to commit fraud due to experience and expertise in accounting.…”