The Effect of Cooperative's Characteristic on Financial Reporting Timeliness

Abstract

The purpose of this study is to do more in-depth analysis about factors that affect the financial reporting timeliness. The sample used in this study consists of 90 existing cooperatives in Denpasar city. Secondary data obtained from the Department of Cooperatives, Small, and Medium Enterprises. The primary data collected from the questionnaires. The analytical technique used is multiple linear regression. The results of this study found that profitability, leverage, and total assets are significantly effecting on financial reporting timeliness of the cooperative. On the other hand, the performance of the executive board and the participation of members are not significantly affected on financial reporting timeliness. The results of this study are expected to be input for service Cooperatives and Small and Medium Enterprise Office in oversees cooperative for the sake of realization of the principle of accountability and financial transparency.

Do Good Corporate Governance and Profitability Affect Companies on Submitting the Annual Financial Report on Time?

“…This can be interpreted that the majority of the mining companies successfully attained profit and maintained to report their financial statements on time. This is in accordance with the study conducted by [20] and [21]. Their research said that profitability shows that the company has succeeded to obtain profits which send the good signal to the stakeholders and the shareholders.…”

Effect of Accounting Information Systems, Teamwork, and Internal Control on Financial Reporting Timeliness

“…Therefore, with the increasing use of accounting information systems, the delivery of financial statements is said to be more timely. This conclusion is in accordance with Cleary (2017); Edmonds et al (2017); Susandya (2018) and it showed a positive and significant effect on the timeliness of financial statement submission. However, this result is slightly different from the conclusion of Borsellino et al (2020); Kythreotis and Constantinou (2016); Zaitul and Ilona (2019), which states that the information system does not affect the timeliness of financial reporting on large companies.…”

“…This was in line with the report by Lubis (2016) on the cash receipt, cash expenditure, vendor, procurement, and staffing system to the timeliness of financial statement. The findings by Aula and Budisusetyo (2018); Susandya (2018) concluded that teamwork and internal control did not affect the accuracy of the financial statements submitted.…”

“…Cooperative as an advance institution, seeks to meet the needs of its members, as well as engage in collaborative activities to manage various businesses that benefit the surrounding community (Asher, 2007;Schenk et al, 2018;Susandya, 2018). The success and progress achieved depend on the workforce of the management and members (as a…”

“…Timeliness describes availability of information to users of financial statements before losing the opportunity of influencing economic decisions (Aktaş, 2011;Susandya, 2018;Young, 2017). It affects the relevance of the financial information presented.…”