IDEAS home Printed from https://ideas.repec.org/a/gam/jijfss/v11y2023i1p48-d1101063.html
   My bibliography  Save this article

Does Audit Committee Busyness Impact Audit Report Lag?

Author

Listed:
  • Awatif Hodaed Alsheikh

    (Applied College, Umm Al-Qura University, Makkah 21955, Saudi Arabia)

  • Warda Hodaed Alsheikh

    (Applied College, Umm Al-Qura University, Makkah 21955, Saudi Arabia)

Abstract

We investigate the effects of both the busyness of audit committee (AC) members and the busyness of audit committee chairs on audit report lag (ARL) among Saudi non-financial firms between 2018 and 2021. In this study, a sample comprising a total of 515 firm-year observations from 140 non-financial firms was used. Measures for the busyness of the AC members and AC chairs, as well as a measure for the ARL, were derived from the previous literature to examine these relationships in Saudi Arabia. Our findings, based on two regression models and random effect estimates, suggest that both the busyness of AC members and the busyness of the AC chairs have positive and significant effects on the ARL. In addition, robustness checks using a different measurement of ARL as well as tests for fixed effect and pooled ordinary least square (OLS) were conducted, and the results confirm our findings. Finally, our findings can help regulators, policymakers, and auditors improve the timeliness of financial information disclosure by Saudi non-financial firms, and they can be expanded to include Gulf Cooperation Council (GCC) nations.

Suggested Citation

  • Awatif Hodaed Alsheikh & Warda Hodaed Alsheikh, 2023. "Does Audit Committee Busyness Impact Audit Report Lag?," IJFS, MDPI, vol. 11(1), pages 1-16, March.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:48-:d:1101063
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7072/11/1/48/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7072/11/1/48/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rusmin Rusmin & John Evans, 2017. "Audit quality and audit report lag: case of Indonesian listed companies," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 25(2), pages 191-210, May.
    2. Stephen Owusu-Ansah, 2000. "Timeliness of corporate financial reporting in emerging capital markets: empirical evidence from the Zimbabwe Stock Exchange," Accounting and Business Research, Taylor & Francis Journals, vol. 30(3), pages 241-254.
    3. Mahmoud Mousavi Shiri & Mahdi Salehi & Ali Radbon, 2016. "A Study of Impact of Ownership Structure and Disclosure Quality on Information Asymmetry in Iran," Vikalpa: The Journal for Decision Makers, , vol. 41(1), pages 51-60, March.
    4. Bikki Jaggi & Judy Tsui, 1999. "Determinants of audit report lag: further evidence from Hong Kong," Accounting and Business Research, Taylor & Francis Journals, vol. 30(1), pages 17-28.
    5. repec:mth:ijafr8:v:9:y:2019:i:1:p:152-169 is not listed on IDEAS
    6. Quang Khai Nguyen, 2022. "Audit committee effectiveness, bank efficiency and risk-taking: Evidence in ASEAN countries," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2080622-208, December.
    7. Beretta, Sergio & Bozzolan, Saverio, 2004. "Reply to: Discussions of "A framework for the analysis of firm risk communication"," The International Journal of Accounting, Elsevier, vol. 39(3), pages 303-305.
    8. Beretta, Sergio & Bozzolan, Saverio, 2004. "A framework for the analysis of firm risk communication," The International Journal of Accounting, Elsevier, vol. 39(3), pages 265-288.
    9. Il-Hang Shin & Ho-Young Lee & Hyun-Ah Lee & Myungsoo Son, 2017. "How does human resource investment in internal control affect audit reporting lag?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 24(1-2), pages 195-215, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Susana Escaloni & Mercedes Mareque, 2021. "Audit Report Lag. Differential Analysis between Spanish SMEs and Non-SMEs," Sustainability, MDPI, vol. 13(22), pages 1-21, November.
    2. Linsley, Philip M. & Shrives, Philip J., 2006. "Risk reporting: A study of risk disclosures in the annual reports of UK companies," The British Accounting Review, Elsevier, vol. 38(4), pages 387-404.
    3. Musa Inuwa Fodio & Victor Chiedu Oba & Abiodun Bamidele Olukoju & Ahmed Abubakar Zik-rullahi, 2015. "IFRS Adoption, Firm Traits and Audit Timeliness: Evidence from Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(3), pages 106-119, June.
    4. Ishmael Tingbani & Lyton Chithambo & Venancio Tauringana & Nikolaos Papanikolaou, 2020. "Board gender diversity, environmental committee and greenhouse gas voluntary disclosures," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2194-2210, September.
    5. Abdullah, Azrul Bin & Ismail, Ku Nor Izah Ku, 2018. "Hedging Activities Information and Risk Management Committee Effectiveness: Malaysian evidence," SocArXiv kxfqe, Center for Open Science.
    6. Bing Wang & Si Xu & Kung-Cheng Ho & I-Ming Jiang & Hung-Yi Huang, 2019. "Information Disclosure Ranking, Industry Production Market Competition, and Mispricing: An Empirical Analysis," Sustainability, MDPI, vol. 11(1), pages 1-16, January.
    7. Deshani C. Hettiarachchi, 2023. "Effects of Non-Financial Performance Management and Risk Disclosures on Not-For-Profit Financial Vulnerability: Evidence from The Australian Aged Care Not-For-Profit Sector," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 22(4), pages 723-745, December.
    8. Gałkiewicz, Dominika Paula, 2015. "Loss potential and disclosures related to credit derivatives: A cross-country comparison of corporate bond funds under U.S. and German regulation," SFB 649 Discussion Papers 2015-017, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    9. Ahmed A. Elamer & Collins G. Ntim & Hussein A. Abdou & Alaa Mansour Zalata & Mohamed Elmagrhi, 2019. "The impact of multi-layer governance on bank risk disclosure in emerging markets: the case of Middle East and North Africa," Accounting Forum, Taylor & Francis Journals, vol. 43(2), pages 246-281, April.
    10. Shrives, Philip J. & Brennan, Niamh M., 2015. "A typology for exploring the quality of explanations for non-compliance with UK corporate governance regulations," The British Accounting Review, Elsevier, vol. 47(1), pages 85-99.
    11. Hina Ismail & Muhammad A. Saleem & Sadaf Zahra & Muhammad S. Tufail & Rao Akmal Ali, 2021. "Application of Global Reporting Initiative (GRI) Principles for Measuring Quality of Corporate Social Responsibility (CSR) Disclosure: Evidence from Pakistan," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    12. Ayad Ahmed Mohammed Al-Qublani & Hasnah Kamardin & Rohami Shafie, 2020. "Audit Committee Chair Attributes and Audit Report Lag in an Emerging Market," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 475-492, July.
    13. Angus W. H. Yip & William Y. P. Yu, 2023. "The Quality of Environmental KPI Disclosure in ESG Reporting for SMEs in Hong Kong," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    14. Malafronte, Irma & Porzio, Claudio & Starita, Maria Grazia, 2016. "The nature and determinants of disclosure practices in the insurance industry: Evidence from European insurers," International Review of Financial Analysis, Elsevier, vol. 45(C), pages 367-382.
    15. Rodríguez Domínguez, Luis & Noguera Gámez, Ligia Carolina, 2014. "Corporate reporting on risks: Evidence from Spanish companies," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 17(2), pages 116-129.
    16. Mohammed Adel Elzahaby, 2023. "Corporate narrative disclosure practices in the Middle East and North Africa (MENA) region: a systematic literature review," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(3), pages 296-315, September.
    17. Monika Wieczorek-Kosmala, 2020. "Weather Risk Management in Energy Sector: The Polish Case," Energies, MDPI, vol. 13(4), pages 1-21, February.
    18. Nicole Darnall & Hyunjung Ji & Kazuyuki Iwata & Toshi H. Arimura, 2022. "Do ESG reporting guidelines and verifications enhance firms' information disclosure?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1214-1230, September.
    19. Dobler, Michael, 2008. "Incentives for risk reporting -- A discretionary disclosure and cheap talk approach," The International Journal of Accounting, Elsevier, vol. 43(2), pages 184-206.
    20. Ibrahim, Awad Elsayed Awad & Hussainey, Khaled & Nawaz, Tasawar & Ntim, Collins & Elamer, Ahmed, 2022. "A systematic literature review on risk disclosure research: State-of-the-art and future research agenda," International Review of Financial Analysis, Elsevier, vol. 82(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:48-:d:1101063. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.