Analyzing the Factors that Influence Financial Reporting Timeliness of Manufacturing Listed Companies in the Indonesia Stock Exchange

Abstract

Financial report plays an important role in communicating between businesspeople. It has given essential information to economic decision-makers as a communication tool. The relevance of qualitative characteristics of financial reports is timeliness. This study analyzes the factors that affect the timeliness of financial reporting on manufacturing companies listed in Indonesia. Factors tested in this study are profitability, company age and external ownership. The sample used in this study was 126 manufacturing companies consistently listed in Indonesia. This study uses secondary data selected based on the purposive sampling method and analyzed using logistic regression analysis. The result indicates that profitability and company age significantly affect the firm's financial reporting timeliness, whereas ownership structure does not affect the timeliness of financial reporting. This study concludes that the company's profitability variable significantly affects the timeliness of the company's financial reporting. The firm age variable significantly affects the timeliness of financial reporting. External ownership variable does not affect the company's financial reporting timeliness. Variable profitability, company age, and ownership structure simultaneously influence the timeliness of company financial reporting.