Gender-Diverse Audit Committees, Size of Public Accounting Firms, and Audit Opinions on Stock Prices Mediated by Audit Report Lag

Zalisman Rahmadan; Yuliusman; Rita Friyani; Achmad Hizazi; Muhammad Gowon

doi:10.55927/ijba.v3i4.5204

Authors

Zalisman Rahmadan Universitas Jambi
Yuliusman Universitas Jambi
Rita Friyani Universitas Jambi
Achmad Hizazi Universitas Jambi
Muhammad Gowon Universitas Jambi

DOI:

https://doi.org/10.55927/ijba.v3i4.5204

Keywords:

Audit Report Lag, Audit Opinions, Gender-Diverse Audit Committees, Size of Public Accounting Firms, Stock Prices

Abstract

This research examines and assesses the connection between gender-diverse audit committees, the size of public accounting firms, and audit opinions on stock price mediated by audit report lag. The research topic explored energy companies listed on the Indonesian stock exchange (IDX). Fifty-four data from three years of observation were included The research sample was selected with a purposive sampling technique, following three particular criteria. Data were analyzed using PLS-SEM analysis. Data processed using SmartPLS 3.2.9 application. The results of the tests showed that results were Gender-diverse audit committees did not affect Audit Report Lag. In contrast, the size of the public accounting firm and audit opinion affected the audit report lag. Gender-diverse audit committees had no direct and indirect effect on stock prices. In contrast, the public accounting firm's size and audit opinion affect stock prices directly and indirectly, and audit report lag affects stock prices.

Downloads

Download data is not yet available.

References

Adinata, Y. D. P., &; Sugiyanto, E. (2019). The Effect of Company Size, Profitability, Audit Opinion, and Size of Public Accounting Firms on Audit Report Lag ( Empirical Study on Property and Real Estate Companies Listed on IDX in 2014–2016) (Doctoral dissertation, University of Muhammadiyah Surakarta).

Alkebsee, R. H., Habib, A., Huang, H. J., &; Tian, G. (2022). The gender-diverse audit committee and audit report lag: Evidence from China. International Journal of Auditing, 26(2), 314–337. https://doi.org/10.1111/ijau.12278

Amin, A., Mauludin, H., &; Suwitawayansari, E. (2021). The Impact of Firm Size on the Effect of Industry Specialization, Audit Opinion and the Size of a Public Accounting Firm (KAP) on Audit Delay in Mining Companies. Asian Journal of Economics, Business, and Accounting, 65–74. https://doi.org/10.9734/ajeba/2021/v21i1830500

Apriani, &; Suharti. (2013). Analysis of Factors Affecting Audit Delay in LQ45 Companies Listed on Indonesia Stock Exchange Period (Vol. 4, Issue 2). http://www.ejournal.pelitaindonesia.ac.id/ojs32/index.php/KURS/index

Astuti, W. A., &; Surtikanti. (2021). Financial Accounting: Understanding Calculations and Recording of Financial Accounting. Bandung: Science Engineering

Azhari, F., &; Nuryatno, M. (2019). Audit opinion moderates the effect of profitability, company size, institutional ownership, and audit committee on timeliness. Scientific Journal of Accounting and Business, 19–33. https://doi.org/10.24843/jiab.2019.v14.i01.p03

Bahri, S., &; Amnia, R. (2020). Effects Of Company Size, Profitability, Solvability, And Audit Opinion On Audit Delay. Journal of Auditing, Finance, and Forensic Accounting, 8(1), 27–35. https://doi.org/10.21107/jaffa.v8i1.7058

Belinda, A., &; Lahaya, I. A. (2022). Analysis of the effect of audit opinions and the size of public accounting firms on stock prices with company size as a moderating variable in financial sector companies listed on the Indonesia Stock Exchange (2018-2020 period). PERFORMANCE, 19(2), 316–326.

Chandra, J., & Arisman, A. (2016). The Effect of Audit Opinion and the Size of Public Accounting Firms (KAP) on Stock Prices (Empirical Study on the Banking Sector on the Indonesia Stock Exchange). Journal of Accounting.

Chen, C., & Hassan, A. (2022). Management gender diversity, executives' compensation, and firm performance. International Journal of Accounting &; Information Management, 30(1), 115–142.

Creswell, John W. 2017. Research Design; Qualitative, Quantitative, and Mixed Methods Approaches. Thousand Oaks, CA: SAGE Publications

Dong, B., &; Robinson, D. (2018). Auditor-Client Geographic Proximity And Audit Report Timeliness. Advances In Accounting, 40, 11-19

Eckel, C. C., & Grossman, P. J. (2002). Sex Differences And Statistical Stereotyping In Attitudes Toward Financial Risk. Evolution and Human Behavior, 23(4), 281–295. Https://Doi.Org/10.1016/S1090-5138(02)00097-1

Fadrul, S. Astuti. 2019. Analysis of factors affecting audit report lag in chemical sub-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. Bilancia 3 (1), 45-56

Fellner, G., & Maciejovsky, B. (2002). Risk Attitude and Market Behavior: Evidence from Experimental Asset Markets *.

Francis, B. B., Hasan, I., Wu, Qiang., &; Yan, M. (2014). Are female CFOs less tax aggressive? Evidence from tax aggressiveness.

Ghozali, I., & Latan, H. (2015). Partial least squares concepts, techniques, and applications using the smart pls 3.0 program for empirical research. Semarang: UNDIP Publishing Agency.

Hassan, Y. M. (2016). Determinants of audit report lag: evidence from Palestine. Journal of Accounting in Emerging Economies, 6(1), 13–32. https://doi.org/10.1108/JAEE-05-2013-0024

Husaini, Saiful, &; Ilyas, F. (2019). The substitution role of audit committee effectiveness and audit quality in explaining audit report lag. GATR Accounting and Finance Review, 4(1), 28–37. https://doi.org/10.35609/afr.2019.4.1(5)

Hussin, W.N.W., H.M. Bamahros, and S.N. Shukeri. 2018. "Lead Engagement Partner Workload, Partner-Client Tenure, and Audit Reporting Lag." Managerial Auditing Journal.

Indonesian Institute of Accountants. (2016). Effective Financial Accounting Standards as of January 1, 2017. Jakarta: Indonesian Institute of Accountants

Irfani, K. S. (2021). Factors Affecting Audit Delay (Case Study On Manufacturing Companies Listed On IDX). Services (Journal of Accounting, Audit, and Accounting Information System), 5(3), 444-457.

Kadek, N., Dewi, H. S., Pande, I. M., & Putra, D. (2016). The Effect of Corporate Governance Mechanisms on the Integrity of Financial Statements. In Journal of Accounting at Udayana University (Vol. 15). www.academia.edu

Kartiko, S. W., Rossieta, H., Martani, D., &; Wahyuni, T. (2018). Measuring accrual-based IPSAS implementation and its relationship to central government fiscal transparency. BAR - Brazilian Administration Review, 15(4). https://doi.org/10.1590/1807-7692bar2018170119

Komang Mita Abdina Sari, N., Sujana, E., &; Accounting, J. (2021). The Effect of Cap Reputation, Audit Opinion, Profitability, and Complexity of Company Operations on Audit Delay (Empirical Study on Mining Companies Listed on the Indonesia Stock Exchange in 2015-2017). In Scientific Journal of Accounting Students) Ganesha University of Education (Vol. 12).

Kusuma, P. A., &; Priantinah, D. (2012). The effect of return on investment (ROI), earnings per share (EPS), and dividends per share (DPS) on the share price of mining companies listed on the Indonesia Stock Exchange (IDX) for the period 2008-2010. Nominal Barometer of Accounting and Management Research, 1(2), 50-64.

Lestari, S. Y., &; Nuryatno, M. (2018). Factors Affecting the Audit Delay and Its Impact on Abnormal Return in Indonesia Stock Exchange. International Journal of Economics and Finance, 10(2), 48. https://doi.org/10.5539/ijef.v10n2p48

Pakdaman, H. (2018). Auditor's Opinion and Market Reaction of Companies Listed on the Tehran Stock Exchange (TSE). Revista Publicando, 14, 1–26.

Prabasari, I. G. A. A. R., & Merkusiwati, N. K. L. A. (2017). The effect of profitability, company size, and audit committee on audit delay moderated by KAP's reputation. E-Journal of Accounting, 20(02), 1704-1733.

Primasari, N., &; Ghofirin, M. (2020). Audit report lag, tenure audit, and company size on stock performance volatility. Journal of research innovation, 1(8), 1619-1626.

Safitri, R. D., &; Triani, N. N. A. (2021). Factors that Influence Audit Delay in the Trade, Service, and Investment Sector that Listed on the Indonesian Stock Exchange. Journal of Accounting and Finance, 23(1), 41–50. https://doi.org/10.9744/jak.23.1.41-50

Saputra, A. D., Irawan, C. R., &; Ginting, W. A. (2020). The effect of company size, audit opinion, company age, profitability, and solvency on audit delay. Owner: Accounting Research and Journal, 4(2), 286-295.

Susianto, S. N. (2017). Effect Of Ifrs Obligatory Application, Industry Type, Loss, Subsidiaries, Kap Size, Company Size, Audit Opinion, And Audit Committee Size On Audit Report Lag (Arl) (Empirical Study Of Companies Listed On The Indonesia Stock Exchange For The 2009-2013 Period). Journal Of Environmental Management, Vol. 211(1), 247–255.

Tannuka, S. (2018). Effect Of Company Size, Profitability, Solvency, Liquidity, And Cap Size On Audit Lag Report (Empirical Study On Property, Real Estate, And Building Construction Companies Listed On The Indonesia Stock Exchange For The 2011-2015 Period). Muara Journal Of Economics And Business, Vol. 2(2), 353.

Widyastuti, M. T., &; Astika, I. B. P. (2017). The effect of company size, complexity of company operations, and type of industry on audit delay. E-Journal of Accounting, 18(2), 1082-1111.

Yendrawati, R., &; Mahendra, V. W. (2018). The Influence of Profitability, Solvability, Liquidity, Company Size and Size of Public Accountant Firm on Audit Report Lag. International Journal of Social Sciences and Humanities Invention, 5(12), 5170–5178. https://doi.org/10.18535/ijsshi/v5i12.13