The Effect of Managerial Ability on the Timeliness of Financial Reporting: The Role of Audit Firm and Company Size
Journal Title: Journal of Operational and Strategic Analytics - Year 2023, Vol 1, Issue 1
Abstract
Effective decision-making relies on access to timely and accurate information, which is widely regarded as a valuable asset in the capital market. Accounting information is no exception, and it is critical for managers to provide such information promptly to advance their firms' economic activities. This study investigates the relationship between managers' ability and the timeliness of financial reporting, testing three research hypotheses through linear regression analysis. The statistical population comprises 115 firms listed on the Tehran Stock Exchange between 2012 and 2021, with 1150 firm-year observations. The delay in the auditor's report serves as a proxy for financial reporting timeliness. Managers' abilities are measured using Demerjian et al.'s model [1]. The findings reveal a significant, positive relationship between managerial ability and the timeliness of financial reporting, indicating that higher managerial ability is associated with lower financial reporting delay. Additionally, the results suggest that the relationship between managerial ability and financial reporting timeliness is moderated by the size of the auditing firm and the firm itself.
Authors and Affiliations
Azadeh Shemshad*, Ramin Goudarzi Karim
Keywords
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- EP ID EP731842
- DOI https://doi.org/10.56578/josa010105
- Views 120
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