DETERMINANTS OF AUDIT REPORT LAG OF VIETNAMESE LISTED FIRMS

Authors

  • Nguyễn Thanh Hồng Ân The Faculty of Economics and Business Administration, Dalat University
  • Hoàng Mai Phương The Faculty of Economics and Business Administration, Dalat University

DOI:

https://doi.org/10.37569/DalatUniversity.8.1S.355(2018)

Keywords:

Audit report lag, Audited financial reports, Determinants, Timeliness, Vietnamese listed companies.

Abstract

The purpose of this research is to identify the determinants of audit report lag of the Vietnamese listed firms. Using a dataset of 176 firms listed on the Hochiminh Stock Exchange from 2013 to 2016, the ordinary least square pooled data model regression results show that the audit report lag of the Vietnamese firms is determined by four factors: The quality of the auditors, the profitability of the firms, the amount of inventory and account receivable, and the total amount of accrual of the listed firms. In particular, the firms’ profitability negatively affects the firms’ audit report lag, while the amount of inventory and account receivable positively affects the firms’ audit report lag. Contrary to previous literature, the Vietnamese listed firms which are audited by high-quality auditors usually have longer audit report lag, while the firms with large amount of total accruals generally have shorter audit report lag. A robust test is performed, where the regression equation is re-estimated using panel data estimation techniques with random effect model, and the results confirm the above conclusions.

Metrics

Metrics Loading ...

References

Abdulla, J. (1996). The timeliness of Bahraini annual reports. Advances in International Accounting, 9, 73-88.

Ashton, R., Willingham, J., & Elliott, R. (1987). An empirical analysis of audit delay. Journal of Accounting Research, 25, 275-292.

Ashton, R. H., Graul, P. R., & Newton, J. D. (1989). Audit delay and the timeliness of corporate reporting. Contemporary Accounting Research, 5, 657-673.

Bamber, E. M., Bamber, L. S., & Schoderbek, M. P. (1993). Audit structure and other determinants of audit report lag: An empirical analysis. Auditing: A Journal of Practice & Theory, 12(1), 1-23.

Bộ Tài chính. (2015). Thông tư 155/2015/TT-BTC: Hướng dẫn công bố thông tin trên Thị trường chứng khoán. Hà Nội, Việt Nam: Bộ Tài chính. Được truy lục từ http://moj.gov.vn/vbpq/Lists/Vn%20bn%20php%20lut/View_Detail.aspxItemID=30653

Breusch, T., & Pagan, A. (1980). The Lagrange Multiplier Test and its application to model specification in econometrics. Review of Economic Studies, 47, 239-254.

Carslaw, C. A. P. N., & Kaplan, S. E. (1991). An examination of audit delay: Further evidence from New Zealand. Accounting & Business Research, 22, 21-32.

Che-Ahmad, A., & Abidin, S. (2009). Audit delay of listed companies: A case of Malaysia. International Business Research, 1, 32-39.

Courtis, J. (1976). Relationships between timeliness in corporate reporting and corporate attributes. Accounting and Business Research, 6, 46-56.

Davies, B., & Whittred, G. (1980). The association between selected corporate attributes and timeliness in corporate reporting: Further analysis. ABACUS, 16, 48-60.

Dyer, J. C., & McHugh, A. J. (1975). The timeless of the Australian annual report. Journal of Accounting Research, 13, 204-219.

Garsombke, H. (1981). The timeliness of corporate financial disclosure. In J. K. Courtis (Ed.), Communications via annual reports, AFM Exploratory Series No. 11 (pp. 204-218). Armidale, Australia: University of New England.

Gilling, D. (1977). Timeliness in corporate reporting: Some further comment. Accounting and Business Research, 7, 34-36.

Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46, 1251-1272.

IASB. (2008). Exposure draft of an improved conceptual framework for financial reporting. London, England: IASB.

Jaggi, B., & Tsui, J. (1999). Determinants of audit report lag: Further evidence from Hong Kong. Accounting and Business Research, 30(1), 17-28.

Ng, P. P. H., & Tai, B. Y. K. (1994). An empirical examination of the determinants of audit delay in Hong Kong. British Accounting Review, 26(1), 43-59.

Owusu-Ansah, S. (2000). Timeliness of corporate financial reporting in emerging capital markets: Empirical evidence from the Zimbabwe Stock Exchange. Accounting and Business Research, 30, 241-254.

Owusu-Ansah, S., & Leventis, S. (2006). Timeliness of corporate annual financial reporting in Greece. European Accounting Review, 15, 273-287.

Quốc hội. (2015). Luật Kế toán số 88/2015/QH13. Hà Nội, Việt Nam: Văn phòng Quốc hội.

Türel, A. (2010). Timeliness of financial reporting in emerging capital markets: Evidence from Turkey. Istanbul University Journal of the School of Business Administration, 39(2), 227-240.

Vuko, T., & Cular, M. (2014). Finding determinants of audit delay by pooled OLS regression analysis. Croatian Operational Research Review, 15, 81-91.

Wooldridge, J. M. (2002). Introductory Econometrics: A modern approach. Massachusetts, USA: Cengage Learning Press.

Published

01-04-2018

Volume and Issues

Section

Economics and Management

How to Cite

Ân, N. T. H., & Phương, H. M. (2018). DETERMINANTS OF AUDIT REPORT LAG OF VIETNAMESE LISTED FIRMS. Dalat University Journal of Science, 8(1S), 3-19. https://doi.org/10.37569/DalatUniversity.8.1S.355(2018)