The Effect of Management Change, Financial Distress, and Earnings Management on Audit Report Lag with the Number of Commissioners as a Moderating Variable
Abstract
Audit report lag or the timeline for completing the audit needs special attention for companies because it significantly contributes to preserving the relevance financial statements. The aim of this study is to examine and provide empirical evidence regarding influence the management of change, financial distress and earnings management on audit report lag with the number of commissioners as a moderating variable. This research was carried out at the mining companies listed on the Indonesia Stock Exchange in 2020-2022. Types of data used is secondary data is provided in the form of audited financial reports. Method of data analysis uses Structural Equation Modeling-Partial Least Square (SEM-PLS). The findings indicated that management change and earnings management had no effect on audit report lag, while financial distress had a significant effect on audit report lag and was strengthened by the number of boards of commissioners as a moderating variable. However, the number of boards of commissioners is not supported to be a moderating variable that strengthens the effect of management changes and earnings management.
References
Agustia, D., Muhammad, N. P. A., & Permatasari, Y. (2020). Earnings management, business strategy, and bankruptcy risk: evidence from Indonesia. Heliyon, 6(2), e03317. https://doi.org/10.1016/j.heliyon.2020.e03317
Agustina, E. O., Ekonomi, F., & Luhur, U. B. (2019). Pengaruh Pergantian Auditor, Reputasi Auditor, Pergantian Manajemen, dan Profitabilitas (ROA) terhadap Audit Report Lag (Studi Empiris Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi yangTerdaftar di Bursa Efek Indonesia Periode 2013-2016). Akuntansi Responsibilitas Audit Dan Tax, 1(1), 200–212. https://jom.fe.budiluhur.ac.id/index.php/jma/article/view/150
Al-Qublani, A. A. M., Kamardin, H., & Shafie, R. (2020). Audit committee chair attributes and audit report lag in an emerging market. International Journal of Financial Research, 11(4), 475–492. https://doi.org/10.5430/ijfr.v11n4p475
Aloysius, R. P. W. (2012). Faktor - Faktor yang mempengaruhi pergantian auditor oleh klien. Kumpulan Jurnal Ilmiah Mahasiswa FEB, Jurusan Akuntansi Fakultas Ekonomi Dan Bisnis Universitas Brawijaya, Malang.
Andrianingsih, A., & Prasetyo, A. B. (2023). Pengaruh Keahlian Keuangan Komite Audit Dan Manajemen Laba Terhadap Audit Report Lag. Diponegoro Journal of Accounting, 12(1), 1–15. http://ejournal-s1.undip.ac.id/index.php/accounting
Ariningrum, I., & Diyanty, V. (2017). The impact of political connections and the effectiveness of board of commissioner and audit committees on audit fees. Australasian Accounting, Business and Finance Journal, 11(4), 53–70. https://doi.org/10.14453/aabfj.v11i4.5
Artaningrum, R. G., & Wasita, P. A. A. (2017). Pengaruh Profitabilitas, Solvabilitas, Likuiditas, Ukuran Perusahaan, Pergantian Manajemen, dan Reputasi KAP pada Audit Report Lag Perusahaan Perbankan. 15(1), 21–26.
Arya Pering, I. M. A. (2020). Kajian Analisis Jalur Dengan Structural Equation Modeling (Sem) Smart-Pls 3.0. Jurnal Ilmiah Satyagraha, 3(2), 28–48. https://doi.org/10.47532/jis.v3i2.177
Choi, J., & Park, H. J. (2023). Financial Distress and Audit Report Lags: An Empirical Study in Korea. Gadjah Mada International Journal of Business, 25(3), 301. https://doi.org/10.22146/gamaijb.72251
Christiani, I., & Nugrahanti, Y. W. (2014). Pengaruh Kualitas Audit Terhadap Manajemen Laba. Jurnal Akuntansi Dan Keuangan, 16(1), 52–62. https://doi.org/10.9744/jak.16.1.52-62
Dewi Sri Susanti, Auliffi Ermian Challen, Elmanizar, & Arfan Ikhsan. (2023). Pengaruh Laba Rugi Perusahaan, Pergantian Manajemen, Dan Financial Distress Terhadap Audit Report Lag. SINTAMA: Jurnal Sistem Informasi, Akuntansi Dan Manajemen, 3(1), 31–39.
Faishal, M., & Hadiprajitno, P. B. (2015). Pengaruh Mekanisme Good Corporate Governance Terhadap Audit Report Lag. Diponegoro Journal of Accounting, 4(4), 1–11.
Fakhfakh, I., & Jarboui, A. (2022). Earnings management and audit report lag: The role of audit risk-Tunisian evidence. Journal of Accounting and Management Information Systems, 21(1), 113–135. https://doi.org/10.24818/jamis.2022.01006
Fujianti, L., & Satria, I. (2020). Firm size, profitability, leverage as determinants of audit report lag: Evidence from Indonesia. International Journal of Financial Research, 11(2). https://doi.org/10.5430/ijfr.v11n2p61
Habbash, M., & Alghamdi, S. (2017). Audit quality and earnings management in less developed economies: the case of Saudi Arabia. Journal of Management and Governance, 21(2), 351–373. https://doi.org/10.1007/s10997-016-9347-3
Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109(November 2019), 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
Hair Jr, J. F., M Hult, G. T., M Ringle, C., Sarstedt, M., P. Danks, N., & Soumya, R. (2021). Review of Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. In Structural Equation Modeling: A Multidisciplinary Journal (Vol. 30, Issue 1). https://doi.org/10.1080/10705511.2022.2108813
Handoko, B. L., Deniswara, K., & Nathania, C. (2019). Effect of profitability, leverage, audit opinion and firm reputation toward audit report lag. International Journal of Innovative Technology and Exploring Engineering, 9(1), 2214–2219. https://doi.org/10.35940/ijitee.A4787.119119
Hidayat, R. N., Sabri, L. M., & Awaluddin, M. (2019). Analisis Desain Jaring Gnss Berdasarkan Fungsi Presisi (Studi Kasus : Titik Geoid Geometri Kota Semarang). Jurnal Geodesi Undip, 8(1), 48–55.
Himawan, F. A., & Venda. (2020). Analisis Pengaruh Financial Distress , Leverage , Profitabilitas, dan Likuiditas terhadap Audit Report Lag pada Perusahaan Manufaktur sektor Industri Konsumsi yang terdaftar di Bursa Efek Indonesia tahun 2014 - 2018. Jurnal Manajemen Bisnis, 23(1), 1–19.
Jensen, M. C., & Meckling, W. H. (1976). Theory Of Firm : Managerial Behavior, Agency and Ownership Structure. Human Relations, 3, 305–360. https://doi.org/10.1177/0018726718812602
Kaaroud, M. A., Mohd Ariffin, N., & Ahmad, M. (2020). The extent of audit report lag and governance mechanisms: Evidence from Islamic banking institutions in Malaysia. Journal of Islamic Accounting and Business Research, 11(1), 70–89. https://doi.org/10.1108/JIABR-05-2017-0069
Karina, T., & Julianto, W. (2022). Pengaruh Financial Distress, Audit Complexity dan Kompleksitas Operasi Terhadap Audit Delay. Veteran Economics, Management, & Accounting Review, 1(1), 121–132.
Lajmi, A., & Yab, M. (2022). The impact of internal corporate governance mechanisms on audit report lag: evidence from Tunisian listed companies. EuroMed Journal of Business, 17(4), 619–633. https://doi.org/10.1108/EMJB-05-2021-0070
Melinda, M., & Wijaya, T. (2021). Pengaruh Financial Distress Dan Reputasi Kap Terhadap Opini Audit Going Concern Dengan Audit Report Lag Sebagai Variabel Intervening (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2019). Publikasi Riset Mahasiswa Akuntansi, 2(2), 135–154. https://doi.org/10.35957/prima.v2i2.927
Muñoz-Izquierdo, N., Laitinen, E. K., Camacho-Miñano, M. del M., & Pascual-Ezama, D. (2020). Does audit report information improve financial distress prediction over Altman’s traditional Z-Score model? Journal of International Financial Management and Accounting, 31(1), 65–97. https://doi.org/10.1111/jifm.12110
Parahyta, C. H., & Herawaty, V. (2020). Pengaruh Financial Distress, Profitabilitas, dan Audit Tenure terhadap Audit Report Lag dengan Ukuran Perusahaan sebagai Variabel Moderasi. KOCENIN Serial Konferensi, 1(1), 1–9.
Putri, B. N. L., & Rachmawati, S. (2019). Analisis Financial Distress dan Free Cash Flow dengan Proporsi Dewan Komisaris Independen sebagai Variabel Moderasi Terhadap Manajemen Laba. Jurnal Keuangan Dan Perbankan, 14(2), 54. https://doi.org/10.35384/jkp.v14i2.127
Sunarsih, N. M., Munidewi, I. A. B., & Masdiari, N. K. M. (2021). Pengaruh Ukuran Perusahaan, Profitabilitas, Solvabilitas, Kualitas Audit, Opini Audit, Komite Audit Terhadap Audit Report Lag. KRISNA: Kumpulan Riset Akuntansi, 13(1), 1–13. https://doi.org/10.22225/kr.13.1.2021.1-13
Sutra, F. M., & Mais, R. G. (2019). Faktor-Faktor yang Mempengaruhi Financial Distress dengan Pendekatan Altman Z-Score pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017. Jurnal Akuntansi Dan Manajemen, 16(01), 34–72. https://doi.org/10.36406/jam.v16i01.267
Syofiana, E., Suwarno, S., & Haryono, A. (2018). Pengaruh Financial Distress, Auditor Switching dan Audit Fee terhadap Audit Delay pada Perusahaan Manufaktur yang Terdaftar di Indeks Saham Syariah Indonesia. JIATAX (Journal of Islamic Accounting and Tax), 1(1), 64. https://doi.org/10.30587/jiatax.v1i1.449
Uyob, S., Md Zin, A. S., Ramli, J., Othman, J., Ghani, N. A. A., & Salleh, K. (2022). The Effect of Shariah Committee Composition on Malaysian Islamic Banks’ Audit Report Lag. International Journal of Applied Economics, Finance and Accounting, 14(1), 67–76. https://doi.org/10.33094/ijaefa.v14i1.652
Wahyuni, S. F., & Rubiyah. (2021). Analisis Financial Distress Menggunakan Metode Altman Z-Score, Springate, Zmijeski dan Grover pada Perusahaan Sektor Perkebunan yang Terdaftar di Bursa Efek Indonesia. MANIEGGIO: Jurnal Ilmiah Magister Manajemen, 4(1), 62–72.
Copyright (c) 2024 International Journal of Science and Society
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.