Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2024-06-28 DOI:10.1016/j.intaccaudtax.2024.100638

Emita Astami , Agus Joko Pramono , Rusmin Rusmin , Fitra Roman Cahaya , Teerooven Soobaroyen

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Abstract

This study investigates the impact of family ownership and supervisory board characteristics on audit report lag in Indonesia. The study relies on a balanced panel dataset and matched-pair sample of 124 listed non-financial firms (2017–2019) in a two-tier board context, drawing on Type II agency theory and the entrenchment/alignment implications of ownership concentration. First, we find a positive and significant association between family ownership and audit report lag. Second, we find evidence that the size of the supervisory board (locally referred to as the board of commissioners) and the frequency of meetings are negatively associated with audit report lag. Further analyses reveal that firms with a larger proportion of family members on the supervisory board experience longer reporting lag. This finding highlights the family’s entrenchment and their domination of the board of commissioners. Additional analysis considering the commissioners’ backgrounds reveals that audit report timeliness worsens when there is a larger proportion of community leadership. This suggests that some commissioner profiles could further lead to entrenchment behaviors. Our findings contribute to the literature and to policy by highlighting the potential and limits of a two-tier board policy on accounting outcomes, particularly in the context of dominant family structures in emerging economies.

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家族所有权和监事会特征会影响审计报告的滞后性吗？两级董事会背景下的观点

本研究探讨了印尼家族所有权和监事会特征对审计报告滞后的影响。研究依赖于平衡面板数据集和两级董事会背景下 124 家非金融类上市公司（2017-2019 年）的配对样本，借鉴了第二类代理理论和所有权集中的巩固/结盟影响。首先，我们发现家族所有权与审计报告滞后之间存在显著的正相关关系。其次，我们发现有证据表明，监事会（当地称为专员委员会）的规模和会议频率与审计报告滞后呈负相关。进一步的分析表明，监事会中家族成员比例越大的公司，其报告滞后期越长。这一发现凸显了家族对监事会的巩固和支配作用。考虑到委员背景的其他分析表明，当社区领导占较大比例时，审计报告的及时性会变差。这表明，某些委员的背景可能会进一步导致固化行为。我们的研究结果强调了两级董事会政策对会计结果的潜在影响和局限性，尤其是在新兴经济体中占主导地位的家族结构背景下，从而为相关文献和政策的制定做出了贡献。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.