The Effect of Bankruptcy Possibility on Audit Delay and Timeliness  (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

Triana Meinarsih; Abdul Yusuf; Muhammad Zilal Hamzah

doi:10.36766/ijag.v2i2.20

The Effect of Bankruptcy Possibility on Audit Delay and Timeliness (Empirical Study on Manufacturing Companies Listed in Indonesian Stock Exchange in the Period of 2012-2016)

Triana Meinarsih, Abdul Yusuf, Muhammad Zilal Hamzah

Abstract

Audit delay and timeliness are important factors that influence the quality of accounting information in term of relevance. This study provides empirical evidence to answer the question of how bankruptcy possibility impacts on audit delay and timeliness. This research studies manufacturing firms listed in Indonesian Stock Exchange (IDX) in the period of 2012-2016. Data are taken from official website of IDX. This study is a quantitative research that seek to find out relationship between independent variable and dependent variable. External secondary data used are annual reports accessed from IDX website. Measurement used is Z-Score Altman model prediction, while simple linear regression is employed as technical analysis. This study finds that bankruptcy possibility which is measured by ZScore is negatively influence audit delay and timeliness. Any decrease of Z-Score shows the possibility of a company experience bankruptcy and therefore causes audit delay and timeliness.

Keywords

Audit delay, Timeliness, Bankruptcy, Altman prediction model

Full Text:

PDF

References

Ahmad dan Kamarudin. 2011. Accounting Theory (Teori Akuntansi). Jakarta: Salemba Empat.

Adnan, M.A. dan Kurniasih, E. 2003. “Analisis Tingkat Kesehatan Perusahaan untuk Memprediksi Kebangkrutan Dengan Pendekatan Altman”. JAAI, Vol.4, No.2., pp. 131-152.

Altman, E.I. 1968. Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. Journal of Finance: Vol. 23, No. 4., pp. 189–209.

Aryati, Titik and Maria Theresia. 2005. Faktor-faktor yang Mempengaruhi Audit Delay dan Timelines. Media Riset Akuntansi, Auditing dan Informasi, Vol. 5, No. 3., pp. 271-287.

Ashton, R.H., P.R. Graul and J.D Newton. 1987. Audit Delay and the Timelines of Corporate Reporting. Contemporary Accounting Research, Vol. 5, No. 2., pp. 657-673.

Ashton, J.K, B. Gerrard and R. Hudson. 2011. Do national soccer results really impact on the stock market?. Journal Applied Economics, Vol. 43, No. 26., pp. 3709-3717.

Begley, J. and G. Feltham (2002), The Relation Between Market Value, Earning Forecasts, and Reported Earnings. Contemporary Accounting Research Vol. 19, No.1., pp. 1-48.

Bungin, H.M.B. 2005. Metode Penelitian Kuantitatif: Komunikasi, Ekonomi, dan Kebijakan Publik Serta Ilmu-ilmu Sosial Lainnya. Edisi Ke-2. Prenada Media Grup. Depok.

Carslaw, C.A.P.N. and S.E. Kaplan. 1991. Examination of Audit Delay: Further Evidence from New Zealand. Accounting and Business Research, Vol. 22, No. 85., pp. 21-32.

Courtis, J.K. 1976. Relationships between Timeliness in Corporate Reporting and Corporate Attributes. Accounting and Business Research, Vol. 7, No. 25., pp. 45-66.

Dyer, J. D. and A.J. McGough. 1975. The Timelines of the Australian Annual Report. Journal of Accounting Research, Autumn. Vol. Oct., No.1., pp. 204-219.

Foster, G. 1986. Financial Statement Analysis. Prentice-Hall, New Jersey.

Fulmer, J. G. Jr., Moon, J. E., Gavin, T. A., Erwin, M. J. (1984, July). "A bankruptcy classification model for small firms." Journal of Commercial Bank Lending, Vol. 66., No. 1., pp. 25-37.

Halim, A. 1997. Auditing I: Dasar-dasar Audit Laporan Keuangan, Edisi-2. UUP AMP YKPN- Yogyakarta.

Givoly, D. and D., Palmon. 1992. Timeliness of Annual Earnings Announcements: Some Empirical Evidence. The Accounting Review, Vol. LVII. No. 3., pp. 486-508.

Lestari, S. 2010. Auditing dan Jasa Assurance: Pendekatan Terintegrasi. Penerbit Jakarta : Erlangga.

Marom, C. 2001. Pedoman Penyajian Laporan Keuangan sesuai PSAK No. 1 (Revisi 1998) dan Peraturan BAPEPAM Nomor VIII. Jakarta: Grasindo.

Owusu-Ansah S. 2000. Timelines of Corporate Financial Reporting in Emerging Capital Markets: Empirical Evidence from Zimbabwe Stock Exchange. Accounting and Bussiness Research, Summer.

Priyatno, D. 2012. Cara Kilat Belajar Analisis Data dengan SPSS 20. Yogykarta: Penerbit Andi.

Putri, K.. 2011. Auditing. Jakarta: Penerbit Erlangga.

Rachmawati, S. 2008. Pengaruh Faktor Internal dan Eksternal Perusahaan Terhadap Audit Delay dan Timelines. Jurnal Akuntansi, Vol. 13, No. 2., pp. 1-10.

Setyahadi, R. 2012. Pengaruh Probabilitas Kebangkrutan pada Audit Delay. Program Pasca Sarjana Universitas Udayana, Denpasar.

Scott, W.R. 2015. Financial Accounting Theory, 7th edition. Toronto: Person Education Canada, Inc.

Schwartz, K.B. and Menon, K. 1985. Auditor Switches by Failing Firms. The Accounting Review Vol. 60, No. 2.

Sugiyono. 2014. Statistik Untuk Penelitian. Cetakan ke -24. Bandung: Alfabeta

Sumiadji. 2009. Hubungan antara Audit Delay dan Kantor Akuntan Publik yang memiliki Kerjasama Internasional. Polbis Jurnal Ekonomi dan Bisnis, Vol. 7, No. 1., pp. 1-10.

Varianada, H. 1999. Faktor-faktor yang mempengaruhi Audit Delay: Studi Empiris pada perusahaan-perusahaan yang tercatat di Bursa Efek Indonesia. Jurnal Bisnis dan Akuntansi, Vol. 2, No. 1., pp. 63-75.

Zmijewski, M.E. 1984. Methodological Issues Related to the Estimation of Financial Distress Prediction Models. Journal of Accounting Research. Vol. 22, pp. 59-82.

DOI: https://doi.org/10.36766/ijag.v2i2.20