Influence of Good Corporate Governance, Profitability, Solvability and Audit Firm Reputation to Audit Report Lag on CPO Sector

Abstract

In this era of globalization, it is necessary to present clear information regarding the company's background and company accounting information in the form of financial reports. Financial statements are the final process of an accounting cycle that is used as a basis for decision making, where the financial statements contain the performance of a company including the company's financial position and cash flow. Financial reports are useful as a means of information about the company for interested parties to make decisions. The interested parties are shareholders, management, government, consumers, creditors, and society based on different goals and motives. Given the importance of company information regarding decision making the timeliness of reporting plays a high role for interested parties. Because information will have benefits if delivered on time to the wearer. Timely information is information that is available before it loses its ability to influence decisions or to make changes to a decision. Thus, the purpose of this research is to identify the causes of audit report lag with good corporate governance variables, differences in profitability, differences in solvency and reputation as control variables. The population in this study are Crude Palm Oil (CPO) sector companies listed on the Indonesia Stock Exchange (IDX) from 2013 to 2022. The sampling technique in this study used a purposive sampling method and the number of samples in this study was 250 data sets. The research data were processed using the IBM SPSS Statistics 25 program. The results showed that good corporate governance variables had a negative effect on audit report lag. In addition, the audit firm reputation variable has a positive effect on audit report lag. Meanwhile, the variable difference in profitability and difference in solvency has no effect on audit report lag.