The Effect of Good Corporate Governance Mechanisms on the Timeliness of Financial Reporting

Aisyah Naurah; Miswaty; Ika Makherta Sutadji

doi:10.63922/ijebir.v5i04.5616

Aisyah Naurah Universitas Balikpapan
Miswaty Universitas Balikpapan
Ika Makherta Sutadji Universitas Balikpapan

DOI: https://doi.org/10.63922/ijebir.v5i04.5616

Keywords: Corporate Governance, Financial Reporting Timeliness, Managerial Ownership, Board of Commissioners, Indonesia Stock Exchange

Abstract

The timeliness of financial reporting is an essential aspect of financial information quality, as delayed reporting reduces its relevance for investors and other stakeholders. This study aims to examine the effects of managerial ownership, institutional ownership, public ownership, the board of commissioners, and the audit committee on the timeliness of financial reporting among non-essential consumer goods companies listed on the Indonesia Stock Exchange during 2022–2024. Previous studies have reported inconsistent findings regarding the effectiveness of corporate governance mechanisms in improving reporting timeliness, indicating the need for further investigation. This study employed a quantitative approach using purposive sampling, resulting in 53 companies (159 firm-year observations). Logistic regression analysis was conducted using SPSS version 26. The findings reveal that public ownership and the board of commissioners significantly influence the timeliness of financial reporting, whereas managerial ownership, institutional ownership, and the audit committee have no significant effect. These findings contribute to the corporate governance literature by providing updated empirical evidence from the Indonesian non-essential consumer goods sector and highlighting the governance mechanisms that effectively support timely financial reporting.

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