Corporate Governance and Profitability on the Timeliness of Financial Reporting: An Empirical Study of the Mining Sector

Abstract

The research objective to be achieved is to provide understanding and knowledge to the public, especially investors and creditors about the role of corporate governance (independent commissioners, the audit committee and institutional ownership) and return on assets (ROA) on the timeliness of financial reporting and can use as a reference for further researchers and stakeholders in making relevant and reliable decisions. The Population in this study is a listed mining sector issuer on the Indonesia Stock Exchange conducted for 3 years of observation in 2016 - 2018. Data collection techniques using a purposive sampling method. Analysis of the data used is logistic regression The results showed that only return on assets had a positive and significant effect on the timeliness of financial reporting. While the independent commissioner variable, the size of the audit committee and institutional ownership have an influence but are not significant

The Impact of Good Corporate Governance as a Moderation of Company Performance on the Timeliness of Submitting Financial Statements

“…The increased return on assets shows how well the assets are managed by the company to bring profit for every dollar of assets that have been invested into the company (Atidhira & Yustina, 2017). Companies that have a high level of profitability can be said that the company has good performance so that the company's financial statements contain good news and companies will tend to submit their financial reports in a timely manner (Pratama & Ciptani, 2018;Wahyuni, 2020). H1: ROA has a significant effect on the timeliness of financial statement submission.…”

“…However, this is not the case with companies that experience losses which tend to slow down the delivery of their financial reports (Irama, 2018: Ardian & Khoiruddin, 2014. Likewise with the results of research (Wahyuni, 2020) which states that the high profitability (return on assets) of a company will increase the company's ability to produce quality financial reports and will submit financial reports on time, this is because it is related to company performance. If profit is categorized as good news, then debt can be said as bad news.…”

“…Regarding the relationship between corporate governance which is able to moderate between financial ratios and the level of timeliness of the submission of financial statements, research shows (Hadi, 2018). ; Wahyuni, 2020), where the level of supervision as a principle of GCG is able to have an influence on the timeliness of the submission of financial reports, especially if the condition of the financial statements is in good news.…”

Pengaruh Mekanisme Good Corporate Governance Terhadap Ketepatan Waktu Penyampaian Laporan Keuangan

“…Dengan demikian maka kepemilikan saham institusi dapat memberikan pengawasan yang lebih baik atas kinerja yang dilakukan manajemen perusahaan, sehingga dapat meminimalisir terjadinya asimetri informasi (Marfuah et al, 2021). Semakin tinggi presentase keberadaan komposisi investor luar berbentuk institusi, dapat menciptakan pengawasan yang lebih baik sehingga mendorong manajemen melakukan transparansi informasi dengan penyampaian laporan keuangan secara tepat waktu kepada stakeholder (Wahyuni, 2020). Pernyataan tersebut sejalan dengan pendapat yang diberikan dalam penelitian Kurniati et al (2017), Verawati (2018), dan Aqsa et al (2020) mereka berpendapat bahwa terdapat pengaruh positif yang diberikan kepemilikan institusional terhadap tepat waktunya penyampaian laporan keuangan disampaikan.…”

“…Komisaris independen pada suatu perusahaan memiliki tugas untuk mengawasi secara langsung mengenai kebijakan dan praktik pelaporan keuangan yang dilakukan manajemen perus ahaan serta memberikan saran-saran kepada manajemen terkait keputusan dan kebijakan yang akan diambil dalam pengelolaan perusahaan (Dwiyani et al, 2017). Keberadaan komisaris independen dapat membantu mengawasi kinerja manajemen secara langsung sehingga praktik laporan keuangan akan lebih diperhatikan terutama ketepatan waktunya (Wahyuni, 2020). Dengan demikian, keberadaan komsaris independen dapat mendorong pelaksanaan disampaikannya laporan keuangan secara tepat waktu oleh perusahaan.…”