Business & Management Studies: An International Journal
Yazarlar: Serhat ŞAMİL, Onur TOK
Konular:-
Anahtar Kelimeler:Bağımsız Denetim,Denetim Raporu Gecikmesi,Kurumsal Yönetim Independent Audit Audit Report Lag Corporate Governance
Özet: LITERATURE RESEARCH SUBJECT The subject of this study is to provide new evidence on the association between corporate governance (CG) characteristics and audit report delay (ARL), which is frequently discussed in the literature. RESEARCH PURPOSE AND IMPORTANCE The primary purpose of this study is to examine the association between selected CG characteristics and ARL. The rationale behind this purpose is that ARL's close relation with the information asymmetry. ARL is seen as an essential determinant for financial reporting delay (Ashton et al., 1987; Owusu-Ansah, 2000: 241; Pizzini et al. 2015:26; Sultana et al., 2015) and financial reporting delay is also seen as a determinant of information asymmetry between interested parties (Bamber et al., 1993). Thus, the relation between ARL and information asymmetry is well seen. Both CG and audit itself have a mission to deal with the problem of asymmetric information. Therefore, it is considered to study the association between them. CONTRIBUTION of the ARTICLE to the LITERATURE This study contributes to the ARL literature with its addressed CG dimensions. It also provides new evidence in the literature from Turkey. DESIGN AND METHOD RESEARCH TYPE Type of this study is a quantitative-based approach with cross-sectional data. RESEARCH PROBLEM The association between CG characteristics and ARL. DATA COLLECTION METHOD The data employed in this study collected from Public Disclosure Platform (KAP, www.kap.gov.tr). The sample covers 169 companies listed in BIST MANUFACTURING INDEX. QUANTITATIVE / QUALITATIVE ANALYSIS In the study, a quantitative method, the multiple regression model, was used to test the association between the independent variables of CG and the dependent variable of ARL. RESEARCH MODEL The model has been tested statistically is as follow: ARL = b0 + b1ickontroletk + b2ykuzman + b3ykbuyuk + b4ykbgmszoran + b5yktop+ b6kykrapor + e Where, ARL = Logarithm of the number of days from the fiscal year-end to the audit report date; İckontroletk = Logarithm of the number of reports submitted by the internal control unit to the committees of the board of directors; Ykuzman = 1, if there is at least one expert on the board and 0 otherwise; Ykbuyuk = Logarithm of the number of people on the board; Ykbgmszoran = Proportion of independent members on the board of directors; Yktop = Logarithm of the number of physical meetings of the board of directors in a year; Kykrapor = Logarithm of the number of reports submitted by the CG committee to the Board of Directors. RESEARCH HYPOTHESES H1: There is a negative association between the internal control system efficacy of the and ARL. H2: There is a negative association between the financial/accounting/auditing experience of the board members and the ARL. H3: There is a positive association between board size and ARL. H4: There is an association between the proportion of independent members on the board and ARL. H5: There is an association between the frequency of meetings of the board of directors and ARL. H6: There is a negative association between the number of reports submitted by the CG board and ARL. FINDINGS AND DISCUSSION FINDINGS as a RESULT of ANALYSIS Considering the correlation levels between independent variables, there seems no case that can create a multi-linearity problem. Most of the variables in the model are at a level that can be accepted as a normal distribution between ± 1.5 values (Tabachnick and Fidell, 2013). ARL and ykuzman variables are more than "± 2.5", but they are at a level that can also be considered close to a normal distribution (with 0.95 confidence interval) (Liu et al., 2005). The F-Statistics of the model (5,095) differ significantly (.000) from zero. The model is statistically significant enough to make a healthy inference. HYPOTHESIS TEST RESULTS The developed H3, H5, and H6 hypotheses are statistically supported as a result of the analysis. Statistical supportive results for the H1, H2, and H4 hypotheses could not be obtained. DISCUSSING the FINDINGS with the LITERATURE The number of reports submitted by the internal control units was taken as a proxy for the internal control system efficacy and the H1 hypothesis was tested. However, while the hypothesis developed in parallel with the literature (Ettredge et al., 2006; Harjoto et al., 2015) is in the direction that the effective internal control system might explain the variance of ARL negatively, but a positive and significant explanatory relationship has emerged. Based on the relationship between the presence of experts on the board of directors and the company's financial policies (Güner et al., 2008) and the relationship between the presence of experts and the effectiveness of the internal control system (Ettredge et al., 2006; Conger and Ready, 2004; Harjoto et al., 2015) the H2 hypothesis could not be confirmed. Statistical support was obtained for the size of the board of directors associated with ARL significantly and negatively (H3). There are findings in the literature regarding both negative (Habib et al., 2018) or positive relationship (Naimi et al., 2010) between the presence of independent members on the board of directors and ARL. In this study, it was not found that the presence of independent members in the board of directors’ associates with ARL in any way. The association between the meeting frequency of the board of directors and ARL (H5) is positively and significantly supported in parallel with other studies (Chan et al., 2015; Habib et al. 2018). The effectiveness of the CG committee, which monitors whether CG principles are implemented in companies and present related reports, is represented by the number of reports presented in the study. The H6 hypothesis, which was developed that the effectiveness of the CG the committee explains the variance in ARL negatively, is statistically supported. CONCLUSION, RECOMMENDATION AND LIMITATIONS RESULTS of the ARTICLE In this study, the association between ARL, which causes asymmetric information, and the practices of corporate governance that must combat asymmetric information, has been investigated. As a result of the study conducted the meeting frequency and size of the board of directors and the effectiveness of the corporate governance committee associates with ARL through the proxies used. SUGGESTIONS BASED on RESULTS Considering other dimensions and with more data, further studies should be conducted to provide more insight into the association between CG and ARL. Also, moderating or mediating effects between variables might be taken into consideration. LIMITATIONS of the ARTICLE Since the data used in the study is limited in terms of time and number of companies, it should be known that the comments and inferences to be made are within these constraints. Besides, CG includes much more than the dimensions discussed in this study. Another critical point is that the causality inference cannot be made in the relationship that is trying to reveal.