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The Timeliness Of Annual Reports In Bahrain And The United Arab Emirates: An Empirical Comparative Study

Author

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  • Hussein Ali Khasharmeh
  • Khaled Aljifri

Abstract

The main purpose of this study is to examine empirically the determinants of audit delay in two developing countries, the UAE and Bahrain. This study utilizes a sample of 83 firms using the accounting and market data available for 2004. The sample firms are all listed in either the UAE or Bahraini Stock Markets. Cross-sectional regression analysis is employed to test the hypotheses of the study. The results of this study show that four variables (profitability, debt ratio, sector type, and dividend payout ratio) examined in Bahrain appear to have a strong influence on the timeliness of annual reports (audit delay). However, another three variables (audit type, firm size, and price earnings ratio) are found to have a weak effect on the audit delay. In the UAE, the study concludes that two variables (debt ratio and audit type) appear to have a strong influence on audit delay, while the other variables were found not to have a significant effect on it. These results may help users of financial information to assess the impact of such variables on improving the timeliness of annual reports.

Suggested Citation

  • Hussein Ali Khasharmeh & Khaled Aljifri, 2010. "The Timeliness Of Annual Reports In Bahrain And The United Arab Emirates: An Empirical Comparative Study," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(1), pages 51-71.
    • Handle: RePEc:ibf:ijbfre:v:4:y:2010:i:1:p:51-71
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    References listed on IDEAS

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    5. Ashton, Rh & Willingham, Jj & Elliott, Rk, 1987. "An Empirical-Analysis Of Audit Delay," Journal of Accounting Research, Wiley Blackwell, vol. 25(2), pages 275-292.
    6. 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.
    7. Stergios Leventis & Pauline Weetman, 2004. "Timeliness of financial reporting: applicability of disclosure theories in an emerging capital market," Accounting and Business Research, Taylor & Francis Journals, vol. 34(1), pages 43-56.
    8. Dyer, Jc & Mchugh, Aj, 1975. "Timeliness Of Australian Annual-Report," Journal of Accounting Research, Wiley Blackwell, vol. 13(2), pages 204-219.
    9. Easterbrook, Frank H, 1984. "Two Agency-Cost Explanations of Dividends," American Economic Review, American Economic Association, vol. 74(4), pages 650-659, September.
    10. Soltani, Bahram, 2002. "Timeliness of corporate and audit reports: Some empirical evidence in the French context," The International Journal of Accounting, Elsevier, vol. 37(2), pages 215-246.
    11. Aljifri, Khaled & Khasharmeh, Hussein, 2006. "An investigation into the suitability of the international accounting standards to the United Arab Emirates environment," International Business Review, Elsevier, vol. 15(5), pages 505-526, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Anh Huu Nguyen & Hieu Thanh Nguyen & Chung Quang Tran & Lien Quynh Le, 2022. "Determinants of Time for Publication Annual Reports: Empirical Evidence from Non-Financial Listed Companies in Vietnam," IJFS, MDPI, vol. 10(2), pages 1-21, June.
    2. repec:mth:ijafr8:v:9:y:2019:i:1:p:152-169 is not listed on IDEAS
    3. Khaled Aljifri & Abdulkareem Alzarouni & Chew Ng & Mohammad Iqbal Tahir, 2014. "The Association between Firm Characteristics and Corporate Financial Disclosures: Evidence from UAE Companies," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(2), pages 101-123.
    4. Bishnu Prasad Bhattarai, 2021. "Determinants of Audit Report Lag of Commercial Banks in Nepal," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(10), pages 108-108, July.
    5. repec:mth:ijafr8:v:9:y:2019:i:1:p:450-461 is not listed on IDEAS
    6. Moalla Marwa & Bassem Salhi & Anis Jarboui, 2020. "Environmental Audit and Environmental Disclosure Quality," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(1), pages 93-115, March.
    7. Khadijah Adeola Idowu & Jamiu Olakunle Tijani, 2020. "Audit Reporting Lag and Regulatory Compliance in Listed Financial Services Firms in Nigeria: A Cross-Sectoral Evaluation," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(3), pages 163-173, September.

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    More about this item

    Keywords

    audit delay; United Arab Emirates; Bahrain; timeliness; annual reports; firm size; sector type; audit type; debt ratio; profitability; price earnings ratio; dividend payout ratio;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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