Astami, Emita and Pramono, Agus Joko and Cahaya, Fitra Roman and Rusmin, Rusmin and Soobaroyen, Teerooven (2024) Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context. Journal of International Accounting, Auditing and Taxation, 56. p. 100638. DOI https://doi.org/10.1016/j.intaccaudtax.2024.100638
Astami, Emita and Pramono, Agus Joko and Cahaya, Fitra Roman and Rusmin, Rusmin and Soobaroyen, Teerooven (2024) Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context. Journal of International Accounting, Auditing and Taxation, 56. p. 100638. DOI https://doi.org/10.1016/j.intaccaudtax.2024.100638
Astami, Emita and Pramono, Agus Joko and Cahaya, Fitra Roman and Rusmin, Rusmin and Soobaroyen, Teerooven (2024) Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context. Journal of International Accounting, Auditing and Taxation, 56. p. 100638. DOI https://doi.org/10.1016/j.intaccaudtax.2024.100638
Abstract
This study investigates the impact of family ownership and supervisory board characteristics on audit report lag in Indonesia. The study relies on a balanced panel dataset and matched-pair sampling design of 124 listed non-financial firms (2017-2019) in a two-tier board context, drawing on the Type II agency theory and the entrenchment/alignment implications of ownership concentration. Firstly, there is a positive and significant association between family ownership and audit report lag. Second, we find evidence that supervisory board size (locally referred to as a board of commissioners) and meeting frequency are negatively associated with audit report lag. Further analyses reveal that firms with a larger proportion of family members on the supervisory board experience longer reporting lag, thus highlighting family entrenchment and their domination of the board of commissioners. Additional analysis considering the specific background of commissioners reveals that audit report timeliness worsens if there is a larger proportion of community leadership and advisory commissioners. This suggests that some commissioner profiles could further lead to entrenchment behaviors. Our findings contribute to the literature and policy in highlighting the potentialities and limits of a two-tier board policy on accounting outcomes, particularly in the context of dominant family structures in emerging economies.
Item Type: | Article |
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Uncontrolled Keywords: | audit report lag; corporate governance; emerging economies; family ownership; Indonesia; two-tier board structure |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 12 Jan 2024 15:43 |
Last Modified: | 16 Jul 2024 10:59 |
URI: | http://repository.essex.ac.uk/id/eprint/37428 |
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