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Factors Affecting the Audit Delay and Its Impact on Abnormal Return in Indonesia Stock Exchange

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  • Syarifa Yunindiah Lestari
  • Muhammad Nuryatno

Abstract

This study aims to study the phenomenon of audit delay that still Occurs in various companies in Indonesia Stock Exchange, Thus affecting the decision of the users of financial statements. This study secondary uses of data in 2009-2015 from 20 companies selected by purposive sampling method, which is to determine the company as a sample according to research needs. This research found that firm size (X1), leverage (X3), and audit opinion (X5) have the significant effect on the audit delay of the company in Indonesia Stock Exchange. While the variable profitability (X2) and reputation audit (X4) have no significant effect on audit delay in companies listed on Indonesia Stock Exchange. Audit delay (Y) does not affect stock price fluctuations, so it does not have a significant impact on the company¡¯s abnormal return (AR) on the Indonesia Stock Exchange.

Suggested Citation

  • Syarifa Yunindiah Lestari & Muhammad Nuryatno, 2018. "Factors Affecting the Audit Delay and Its Impact on Abnormal Return in Indonesia Stock Exchange," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(2), pages 48-56, February.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:2:p:48-56
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    References listed on IDEAS

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    1. Tulus Suryanto, 2016. "Audit Delay and Its Implication for Fraudulent Financial Reporting: A Study of Companies Listed in the Indonesian Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 18-31.
    2. Habib, Ahsan & Bhuiyan, Md. Borhan Uddin, 2011. "Audit firm industry specialization and the audit report lag," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(1), pages 32-44.
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    Cited by:

    1. Yen Jesslyn & Herusetya Antonius, 2023. "Audit Report Timeliness Before and During the COVID-19 Pandemic: Evidence from the Market Reaction," Marketing of Scientific and Research Organizations, Sciendo, vol. 47(1), pages 49-70, March.
    2. Lailah Fujianti & Indra Satria, 2020. "Firm Size, Profitability, Leverage as Determinants of Audit Report Lag: Evidence From Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 61-67, April.

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    More about this item

    Keywords

    agency theory; auditing; and audit delay;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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