Audit committee financial expertise and audit report lag: Malaysia further insight
Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/1/13558-62493-1-PB.pdf |
| _version_ | 1848812875226808320 |
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| author | Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad, |
| author_facet | Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad, |
| author_sort | Zalailah Salleh, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using audit report lag, we examined whether Malaysian audit committee financial expertise is relevant for financial reporting timeliness. Using data from 2005 to 2011 from the top 100 Malaysian companies and the fixed effects panel data approach, we find that audit committee financial expertise is not significantly associated with audit report lag proxies. We further examined this issue with the basic premise that audit committee independence enhances the role of audit committee financial expertise. However, the interaction between these mechanisms shows an insignificant association. Additional investigation reveals that these results are driven by the lack of independence on Malaysian boards. We also find evidence suggesting that neither a large number of subsidiaries nor the quality of financial reporting sufficiently justify the recent Malaysian reforms relating to the financial reporting timeframe. |
| first_indexed | 2025-11-15T00:09:14Z |
| format | Article |
| id | oai:generic.eprints.org:11973 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:09:14Z |
| publishDate | 2017 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:119732018-07-26T06:36:29Z http://journalarticle.ukm.my/11973/ Audit committee financial expertise and audit report lag: Malaysia further insight Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad, Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using audit report lag, we examined whether Malaysian audit committee financial expertise is relevant for financial reporting timeliness. Using data from 2005 to 2011 from the top 100 Malaysian companies and the fixed effects panel data approach, we find that audit committee financial expertise is not significantly associated with audit report lag proxies. We further examined this issue with the basic premise that audit committee independence enhances the role of audit committee financial expertise. However, the interaction between these mechanisms shows an insignificant association. Additional investigation reveals that these results are driven by the lack of independence on Malaysian boards. We also find evidence suggesting that neither a large number of subsidiaries nor the quality of financial reporting sufficiently justify the recent Malaysian reforms relating to the financial reporting timeframe. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11973/1/13558-62493-1-PB.pdf Zalailah Salleh, and Baatwah, Saeed Rabea and Norsiah Ahmad, (2017) Audit committee financial expertise and audit report lag: Malaysia further insight. Asian Journal of Accounting and Governance, 8 . pp. 137-150. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1033 |
| spellingShingle | Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad, Audit committee financial expertise and audit report lag: Malaysia further insight |
| title | Audit committee financial expertise and audit report lag:
Malaysia further insight |
| title_full | Audit committee financial expertise and audit report lag:
Malaysia further insight |
| title_fullStr | Audit committee financial expertise and audit report lag:
Malaysia further insight |
| title_full_unstemmed | Audit committee financial expertise and audit report lag:
Malaysia further insight |
| title_short | Audit committee financial expertise and audit report lag:
Malaysia further insight |
| title_sort | audit committee financial expertise and audit report lag:
malaysia further insight |
| url | http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/1/13558-62493-1-PB.pdf |