Audit Opinion, Big4, Auditor Narcissism and CEO Narcissism: Drivers of Reporting Timeliness

Sheila Septiany, Teddy Jurnali, E Egnes, Meiliana Suparman, Budi Harsono

Abstract


This research aims to investigate the influence of audit opinion, Big4, auditor narcissism and CEO narcissism on timeliness. A sample of 138 manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2022 was analyzed using annual financial reports. The study employed statistical analysis with the Stata application to measure the effects of these variables on timeliness, calculated as the number of days between the fiscal year-end and the audit report date. The findings reveal that audit opinion and auditor narcissism have a significant negative effect on timeliness, indicating their role in accelerating audit report completion. Conversely, Big4 firms and CEO narcissism do not significantly impact timeliness, suggesting a more nuanced relationship between leadership traits and audit timing. These results highlight how varying characteristics influence the punctuality of financial reporting, a crucial factor in stakeholder decision-making. The study contributes to agency theory, signaling, and the upper echelons perspective by offering insights into how personality traits and audit practices affect financial reporting timeliness. Practically, it provides guidance for companies to enhance reporting processes by understanding the traits that drive efficiency. The novelty lies in exploring the under-researched influence of CEO narcissism and auditor narcissism on audit timeliness, particularly in the context of public companies in Indonesia, thus enriching the literature and expanding practical applications in the audit field.


Keywords


Audit Opinion, Big 4, Auditor Narcissism, CEO Narcissism, Timeliness

Full Text:

Pdf

References


Adhika Wijasari, L. K., & Ary Wirajaya, I. G. (2021). Faktor-Faktor yang Mempengaruhi Fenomena Audit Delay di Bursa Efek Indonesia. E-Jurnal Akuntansi, 31(1), 168. https://doi.org/10.24843/eja.2021.v31.i01.p13

Anna Apriana Hidayanti, E. N. D. M. (2023). ANALISIS KORELASI PEARSON BIAYA PRODUKSI TERHADAP LUAS LAHAN PETANI GARAM DI KECAMATAN BOLO KABUPATEN BIMA PEARSON CORRELATION ANALYSIS OF PRODUCTION COSTS ON THE LAND AREA OF SALT FARMERS IN BOLO SUB-DISTRICT, BIMA DISTRICT. Inovasi Pendidikan Dan Sains, 4(1), 5–10.

Arifuddin, Hanafi, K., & Usman, A. (2017). Company size, profitability, and auditor opinion influence to audit report lag on registered manufacturing company in Indonesia stock exchange. International Journal of Applied Business and Economic Research, 15(19), 353–367.

Aulia Rachman, D. (2016). ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI AUDIT DELAY PADA PERUSAHAAN TELEKOMUNIKASI Lilis Ardini Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya. 5, 1–14.

Candy, C., & Delfina, D. (2023). Mampukah Struktur Modal Memediasi Pengaruh Ceo Narcissism Dan Overconfidence Terhadap Kinerja Perusahaan? Jurnal Akuntansi Dan Keuangan, 28(2), 155–162. https://doi.org/10.23960/jak.v28i2.1115

Church, B. K., Dai, N. T., Kuang, X., & Liu, X. (2019). The Role of Auditor Narcissism in Auditor-Client Negotiations: Evidence from China. Contemporary Accounting Research, 37(3), 1756–1787. https://doi.org/10.1111/1911-3846.12565

Donald C Hambrick, P. a mason. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers.

Durand, G. (2019). The determinants of audit report lag: a meta-analysis. Managerial Auditing Journal, 34(1), 44–75. https://doi.org/10.1108/MAJ-06-2017-1572

Edi, Basri, Y. Z., & Arafah, W. (2020). CEO characteristics, firm reputation and firm performance after merger and acquisition. Business: Theory and Practice, 21(2), 850–858. https://doi.org/10.3846/btp.2020.12782

Elewa, M. M., & El-Haddad, R. (2019). The Effect of Audit Quality on Firm Performance: A Panel Data Approach. International Journal of Accounting and Financial Reporting, 9(1), 229. https://doi.org/10.5296/ijafr.v9i1.14163

Endah, S., Puspitosari, I., Pramesti, W., Pertiwi, F. P. I., & Wiyadi. (2021). Praktik Earning Management Perusahaan Non Keuangan Di Indonesia ? Jurnal Ekonomi Manajemen Sumber Daya, 23, 120–139.

Fauzi, I., & Firmansyah, A. (2023). Corporate Social Responsibility Disclosure, Intellectual Capital Disclosure, Risk Disclosure, Cost of Capital: Moderating Role of Earnings Management. Accounting Analysis Journal, 12(1), 50–70. https://doi.org/10.15294/aaj.v12i1.66185

Ham, C., Lang, M., Seybert, N., & Wang, S. (2017). CFO Narcissism and Financial Reporting Quality. Journal of Accounting Research, 55(5), 1089–1135. https://doi.org/10.1111/1475-679X.12176

Hendi, H., & Sitorus, R. (2023). An Empirical Research on Audit Report Timeliness. Jurnal Akuntansi Dan Keuangan, 25(1), 39–53. https://doi.org/10.9744/jak.25.1.39-53

Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. The Economic Nature of the Firm: A Reader, Third Edition, 283–303. https://doi.org/10.1017/CBO9780511817410.023

Johnson, L. E., Davies, S. P., & Freeman, R. J. (2002). The effect of seasonal variations in auditor workload on local government audit fees and audit delay. Journal of Accounting and Public Policy, 21(4–5), 395–422. https://doi.org/10.1016/S0278-4254(02)00068-6

Kontesa, M., Brahmana, R., & Tong, A. H. H. (2021). Narcissistic CEOs and their earnings management. Journal of Management and Governance, 25(1), 223–249. https://doi.org/10.1007/s10997-020-09506-0

Krisnawati, N. P. A., & Suartana, I. W. (2017). Pengaruh Kompetensi Karyawan, Motivasi Kerja, Komitmen Organisasi, Kemampuan Teknik Personal Terhadap Kinerja Sistem Informasi Akuntansi. E-Jurnal Akuntansi Universitas Udayana, 21. https://simdos.unud.ac.id/uploads/file_penelitian_1_dir/eebe736295066d89f2c2fd1e4f907a79.pdf

Lai, T. T. T., Tran, M. D., Hoang, V. T., & Nguyen, T. H. L. (2020). Determinants influencing audit delay: The case of Vietnam. Accounting, 6(5), 851–858. https://doi.org/10.5267/j.ac.2020.5.009

Leventis, S., Weetman, P., & Caramanis, C. (2005). Determinants of Audit Report Lag: Some Evidence from the Athens Stock Exchange. International Journal of Auditing, 9(1), 45–58. https://doi.org/10.1111/j.1099-1123.2005.00101.x

Machmuddah, Z., Iriani, A. F., & St. Utomo, D. (2020). Influencing factors of audit report lag: Evidence from Indonesia. Academic Journal of Interdisciplinary Studies, 9(6), 148–156. https://doi.org/10.36941/AJIS-2020-0119

Malmendier, U., Pezone, V., & Zheng, H. (2023). Managerial Duties and Managerial Biases. Management Science, 69(6), 3174–3201. https://doi.org/10.1287/mnsc.2022.4467

Mathuva, D. M., Tauringana, V., & Owino, F. J. O. (2019). Corporate governance and the timeliness of audited financial statements: The case of Kenyan listed firms. Journal of Accounting in Emerging Economies, 9(4), 473–501. https://doi.org/10.1108/JAEE-05-2018-0053

Meiliya, E., & Rahmawati, M. I. (2022). Pengaruh Narsisme Ceo Terhadap Nilai Perusahaan Dengan Manajemen Laba Sebagai Variabel Mediasi. Jurnal Ilmu Dan Riset Akuntansi, 11(2), 1–22.

Muttiarni, M., Mira, M., Putri, L. N., Nurmagfirah, N., Indrayani, S., & Arman, A. (2022). Pengaruh CEO Narsisme dan Ukuran Perusahaan terhadap Kinerja Keuangan pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Jurnal Ilmiah Akuntansi Manajemen, 5(1), 15–22. https://doi.org/10.35326/jiam.v5i1.2045

Nagari, Y. A., & Nuryatno, M. (2022). The Role of Audit Quality as Moderating Factors Influencing the Timeliness of Financial Reporting. Budapest International Research and …, 5(3), 23280–23293. https://www.bircu-journal.com/index.php/birci/article/view/6342

Panggabean, Y. M., & Maradina, J. (2023). Pengaruh Kualitas Audit, Karakteristik Komite Audit, Dan Kepemilikan Institusional Terhadap Timeliness Laporan Keuangan ( Studi Empiris pada Perusahaan Sektor Pertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2021 ). Jurnal Akuntansi, 3(2), 603–618.

Purwanti, T. (2022). BEI Beri Sanksi 91 Emiten yang Belum Setor Lapkeu Tahun 2021. CNBC Indonesia. https://www.cnbcindonesia.com/market/20220513084151-17-338687/bei-beri-sanksi-91-emiten-yang-belum-setor-lapkeu-tahun-2021

Ramadhani, I. P. (2023). 143 Emiten Telat Rilis Laporan Keuangan 2022 Kena Peringatan Tertulis I. Liputan6.Com. https://www.liputan6.com/saham/read/5259390/143-emiten-telat-rilis-laporan-keuangan-2022-kena-peringatan-tertulis-i

Raweh, N. A. M., Abdullah, A. A. H., Kamardin, H., & Malek, M. (2021). Industry expertise on audit committee and audit report timeliness. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1920113

Salehi, M., Zimon, G., & Seifzadeh, M. (2022). The Effect of Management Characteristics on Audit Report Readability. Economies, 10(1), 1–23. https://doi.org/10.3390/economies10010012

Setiyowati, M., & Januarti, I. (2022). Analysis of Influencing Factors Affecting Audit Report Lag. Jurnal ASET (Akuntansi Riset), 14(2), 235–244. https://doi.org/10.17509/jaset.v14i2.48654

Sunarto, S., AjiRamdhani, I., Oktaviani, R. M., & Jaeni, J. (2020). Profitability, Liquidity, Size, Reputation of Public Accounting and Timeliness Reporting Financial Statement: An Analysis of Manufacturing Company Overview in Indonesia. Proceedings of the 3rd International Conference on Banking, Accounting, Management an. Icobame, 169, 419– 423.

Suryani, I., & Pinem, D. (2018). Jurnal 2 Indo 2018. Sinta. Accounting Research Journal of Sutaatmadja (Accruals), 2(2), 20–30.

Syah, T. H., Syah, S., & Nurmalasari, N. (2021). Minat Masyarakat Terhadap Karakteristik Informasi Tekstual dari Kementerian Lingkungan Hidup dan Kehutanan di Media Sosial. Jurnal Komunika: Jurnal Komunikasi, Media Dan Informatika, 10(2), 62. https://doi.org/10.31504/komunika.v10i2.4442

Tai, Y. H. (2023). The relation between the corporate governance evaluation and abnormal returns: the role of company financial performance. Asia-Pacific Journal of Accounting and Economics, 30(4), 1086–1103. https://doi.org/10.1080/16081625.2020.1828952

Tanujaya, K., & Oktavia, M. (2019). Analisa faktor-faktor yang mempengaruhi ketepatan waktu pelaporan keuangan perusahaan terdaftar di bursa efek Indonesia. Global Financial Accounting Journal, 3(1), 15–29.

Wardani, D. K., & Puspitasari, D. M. (2022). Ukuran perusahaan terhadap penghindaran pajak dengan umur perusahaan sebagai variabel moderasi. Kinerja, 19(1), 89–94. https://doi.org/10.30872/jkin.v19i1.10814

Wareza, M. (2021). Bandel! 88 Emiten Belum Setor Lapkeu 2020, Ini Daftarnya. CNBC Indonesia. https://www.cnbcindonesia.com/market/20210611130445-17-252378/bandel-88-emiten-belum-setor-lapkeu-2020-ini-daftarnya

Yanthi, K. D. P., Merawati, L. K., & Munidewi, I. A. B. (2020). Pengaruh Audit Tenure, Ukuran KAP, Pergantian Auditor, dan Opini Audit Terhadap Audit Delay. KHARISMA: Kumpulan Riset Mahasiswa Akuntansi, 2(1), 148–158. https://e-journal.unmas.ac.id/index.php/kharisma/article/view/762

Yook, K. H., & Lee, S. Y. (2020). Chief executive officer narcissism and firm value: The mediating role of corporate social responsibility in the South Korean context. Corporate Social Responsibility and Environmental Management, 27(4), 1709–1718. https://doi.org/10.1002/csr.1918

Ziza Gita Hardini, S. (2016). Analisis Determinan Audit Delay Pada Pemerintah Kabupaten/Kota Di Indonesia. Jurnal Ilmu Dan Riset Akuntansi, 10(1), 1–23. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/3735




DOI: https://doi.org/10.17509/jaset.v17i1.78465

Refbacks

  • There are currently no refbacks.


Creative Commons License

Jurnal ASET (Akuntansi Riset) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. 

View My Stats Visitor