The Impact of Capital Structure, Company Size, and Audit Opinions on Financial Reporting Timeliness: A Comparative Study Before and During the COVID-19 Pandemic

Christina Novita Ariandy; Ratna Mappayunki

doi:10.70550/

Authors

Christina Novita Ariandy Universitas Mercu Buana Author
Ratna Mappayunki Universitas Mercu Buana Author

DOI:

https://doi.org/10.70550/

Keywords:

Capital Structure, Company Size, Timeliness of Financial Reporting, Audit Opinion, COVID-19

Abstract

This study aims to analyze the effect of capital structure and company size on the timeliness of financial reporting in food and beverage companies listed on the Indonesia Stock Exchange (IDX) during 2017-2021, with audit opinion as a moderating variable. This study raises the main problem related to how much influence capital structure and company size have on the timeliness of financial reporting and how audit opinion can strengthen this relationship, both before and during the COVID-19 pandemic. The research method used is quantitative with a binary logistic regression and least squares approach. Secondary data were collected from 30 companies with a total of 150 observations. The study results show that before the COVID-19 pandemic, capital structure significantly affected the timeliness of financial reporting. In contrast, company size did not show a significant effect. The audit opinion has been proven to strengthen the relationship between capital structure and reporting timeliness. However, during the pandemic, neither capital structure nor audit opinion had a significant effect, while company size remained unaffected. The implications of this study provide new insights into the importance of considering the role of audit opinion in maintaining the timeliness of financial reporting, especially in crisis conditions such as a pandemic. The novelty of this research lies in the comparative analysis between the periods before and during the COVID-19 pandemic, which reveals the dynamics of the influence of capital structure and company size on the timeliness of financial reporting.

Downloads

Download data is not yet available.

References

Abdullah, N. C., Sulistiyo, H., & Subchan. (2022). The Role of Profitability and Leverage in Mediation the Effect of Company Size on the Timeliness of Financial Reporting in the Indonesian Stock Exchange. Asian Journal of Economics Business and Accounting, 34–41. https://doi.org/10.9734/ajeba/2022/v22i2130685

Abernathy, J. L., Beyer, B., Masli, A., & Stefaniak, C. M. (2015). How the Source of Audit Committee Accounting Expertise Influences Financial Reporting Timeliness. Current Issues in Auditing, 9(1), P1–P9. https://doi.org/10.2308/ciia-51030

Alsmady, A. A. (2018). The Effect of Board of Directors’ Characteristics and Ownership Type on the Timeliness of Financial Reports. International Journal of Business and Management, 13(6), 276. https://doi.org/10.5539/ijbm.v13n6p276

Anto, F., Haliah, H., Kusumawati, A., & Ola, A. N. (2023). Analyzing the Factors That Influence Financial Reporting Timeliness of Manufacturing Listed Companies in the Indonesia Stock Exchange. International Journal of Finance Economics and Business, 2(2), 109–116. https://doi.org/10.56225/ijfeb.v2i2.208

Asiah, N., Sapruwan, M., & Irwanti, L. A. (2024). The Effect of Company Size, Profitability and Company Age on the Timeless of Financial Reporting. International Journal of Asian Business and Management, 3(2), 121–130. https://doi.org/10.55927/ijabm.v3i2.7564

Baker, R. M. (2019). The Agency of the Principal–Agent Relationship: An Opportunity for HRD. Advances in Developing Human Resources, 21(3), 303–318. https://doi.org/10.1177/1523422319851274

Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85–105. https://doi.org/10.1111/j.1468-2370.2009.00275.x

Chiputra, N., Nugroho, L., & Setiyawati, H. (2023). Determinasi Pengungkapan Sustainability Report berdasarkan Aspek Komite Audit , Frekuensi Rapat Direksi , Ukuran Perusahaan , Likuiditas dan Profitabilitas (Perusahaan Sektor Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2017-2021). Journal of Trends Economics and Accounting Research, 3(4), 350–364. https://doi.org/10.47065/jtear.v3i4.591

Dalton, D. R., Hitt, M. A., Certo, S. T., & Dalton, C. M. (2007). The Fundamental Agency Problem and Its Mitigation. The Academy of Management Annals, 1(1), 1–64. https://doi.org/10.5465/078559806

Daoud, K. A. Al, Ismail, K. N. I. K., & Lode, N. A. (2014). The Timeliness of Financial Reporting Among Jordanian Companies: Do Company and Board Characteristics, and Audit Opinion Matter? Asian Social Science, 10(13). https://doi.org/10.5539/ass.v10n13p191

Dhanurista, M., Djalil, M. A., & Saputra, M. (2021). the Effect of Profitability, Solvability, Firm Size on Timeliness of Financial Reporting With a Going Concern Audit Opinion As a Moderating Variable At Banking Service Company Listed in Indonesian Stock Exchange (Bei) for the Year of 2014-2018. International Journal of Business Management and Economic Review, 04(06), 144–152. https://doi.org/10.35409/ijbmer.2021.3329

Franco, G. De, Kothari, S. P., & Verdi, R. S. (2011). The Benefits of Financial Statement Comparability. Journal of Accounting Research, 49(4), 895–931. https://doi.org/10.1111/j.1475-679x.2011.00415.x

Ikpesu, F., & Osazemen, C. E. (2018). Capital Structure and Corporate Financial Distress of Manufacturing Firms in Nigeria. Journal of Accounting and Taxation, 10(7), 78–84. https://doi.org/10.5897/jat2018.0309

Irwansyah, R., Sihombing, T., Endraria, E., Hidayatin, D. A., Nurzianti, R., Sari, R. P., Malau, M., Nugroho, L., Nurhayati, I., Marietza, F., Aulia, D., Zakaria, M., Awaludin, D. T., & Ardiansyah, T. (2023). AUDITING. In CV WIDINA MEDIA UTAMA. CV WIDINA MEDIA UTAMA.

Manurung, S., Priantana, R. D., Fuadi, R., Daud, R. M., Nugroho, L., Maryasih, L., Lautania, M. F., Meutia, R., Bangun, R., Yulistiyono, A., Ariani, N. E., Djuanda, G., Abyan, F., & Rohana, H. (2022). Akuntansi Manajemen. 72.

Mardi, M., Perdana, P. N., Suparno, S., & Munandar, I. A. (2020). Effect of Accounting Information Systems, Teamwork, and Internal Control on Financial Reporting Timeliness. Journal of Asian Finance Economics and Business, 7(12), 809–818. https://doi.org/10.13106/jafeb.2020.vol7.no12.809

Meisyarah, W., & Mappanyukki, R. (2024). Does Time Budget Pressure Moderate the Determinant Factor of Audit Quality? Formosa Journal of …, 3(7), 1459–1472.

Myers, S. C. (1984). The Capital Structure Puzzle. The Journal of Finance, 39(3), 575. https://doi.org/10.2307/2327916

Nugraha, E., Nugroho, L., & Setiawan, A. (2020). Discourses of Determinants Factor in Audit Quality. The 1st Annual Conference Economics, Business, and Social Sciences. https://doi.org/10.4108/eai.26-3-2019.2290776

Okfitasari, A., Rohmah, S. N., & Novianingsih, R. (2022). Information Technology and Remote Audit During Covid 19 Pandemic. Proceeding of International Conference on Science Health and Technology, 136–144. https://doi.org/10.47701/icohetech.v3i1.2213

Oktaviana, H., & Paramitha, M. (2021). The Effect of Ownership Structure, Audit Committee, Company Size, and Audit Quality on the Integrity of Financial Statements on Manufacturing Companies Listed on IDX. Journal La Bisecoman, 2(4), 15–29. https://doi.org/10.37899/journallabisecoman.v2i4.454

Putri, T. H., & Nugroho, L. (2023). Pengaruh Profitabilitas, Leverage, Likuiditas, dan Ukuran Perusahaan Terhadap Ketepatan Waktu Pelaporan Keuangan. ARBITRASE: Journal of Economics and Accounting, 3(3), 562–572. https://doi.org/10.46806/ja.v7i1.455

Sinaga, T. M., Syafitri, D. R., Gea, W. C., Sianipar, M. R., & Hou, A. (2024). Predictors of the Timeliness of Corporate Financial Reporting. Sultanist Jurnal Manajemen Dan Keuangan, 12(1), 80–86. https://doi.org/10.37403/sultanist.v12i1.575

Sudirgo, T., Lo, J. K. A., & Taniman, G. M. (2023). Timeliness Factors of Financial Reports Submission. Journal of Application on Economics and Business (IJAEB), 1(1), 49–60. https://doi.org/10.24912/ijaeb.11.49-60

Sukarmi, Kasmo, A. B. P., Safitri, Y., & Nugroho, L. (2022). Analisa Perbandingan Laba Pada Masa Pandemi Covid-19 dan Sebelum Pandemi Covid-19 Pada Aspek Biaya Pengobatan, Biaya Perlengkapan dan Biaya Kesejahteraan Karyawan. Jurnal Economina, 1(4), 713–724.

Tahinakis, P., & Samarinas, M. (2016). The Incremental Information Content of Audit Opinion. Journal of Applied Accounting Research, 17(2), 139–169. https://doi.org/10.1108/jaar-01-2013-0011

Terkende, A. J., & Karim, D. I. (2023). Firm Attributes and Financial Reporting Timeliness of Listed Consumer Goods Firms in Nigeria. Gusau Journal of Accounting and Finance, 3(3), 34. https://doi.org/10.57233/gujaf.v3i3.181

Utami, F. L., Putra, Y. M., Sutra Tanjung, P. R., & Nugroho, L. (2020). Analysis of audit opinion of financial statements from state institutions: Indonesia empirical study, period 2012-2017. International Journal of Financial Research, 11(5), 150–160.

Yen, J., & Herusetya, A. (2023). Audit Report Timeliness Before and During the COVID-19 Pandemic: Evidence From the Market Reaction. Marketing of Scientific and Research Organizations, 47(1), 49–70. https://doi.org/10.2478/minib-2023-0004

Yusufa, A. S., Muchlis, & Nugroho, L. (2022). Analisa Perbandingan Kinerja Penyaluran Kredit Perbankan pada Masa Pandemi Covid-19 dan Sebelum Masa Pandemi Covid-19. Jurnal SIKAP (Sistem Informasi, Keuangan, Auditing Dan Perpajakan), 7(1), 50–65. https://doi.org/10.36418/jcs.v1i3.66