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DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY

Year 2019, Volume: 37 Issue: 2, 365 - 386, 28.06.2019
https://doi.org/10.17065/huniibf.399838

Abstract

Timeliness is a fundamental
characteristic of the relevance of financial information and critical for the
functioning of an efficient capital market. This study has two cardinal aims;
firstly it aims to determine the timeliness of financial reporting for Turkish
listed firms. Secondly, the study aims to investigate the impact of firm
specific factors- profitability, size- and other related factors such as
sector, index and auditing on the timeliness of financial reporting in Turkey.
The statistical results indicate that 73 % of the firms that prepare
consolidated financial statements and 57 % of the firms that prepare
unconsolidated financial statements publish their financial reports earlier
than the regulatory deadline. Estimation results of multivariate regression
indicate that profitability, firm size, audit firm, index which firms are
listed and sector affect the timeliness of financial reporting. 

References

  • Abdelsalam, O., A. El-Masry (2008), “The Impact of Board Independence and Ownership Structure on the Timeliness of Corporate Internet Reporting of Irish- Listed Companies” Managerial Finance, 34(12), 907-918.
  • Abdulla, J.Y.A. (1996), “The Timeliness of Bahraini Annual Reports”, Advances in International Accounting, 9(5), 73-88.
  • Afify, H.A.E. (2009), “Determinants of Audit Report Lag: Does Implementing Corporate Governance have Any impact? Empirical Evidence from Egypt”, Journal of Applied Accounting Research, 10(1), 56-86.
  • Ahmed, K. (2003), “The Timeliness of Corporate Reporting: A Comparative Study of South Asia”, Advances in International Accounting, 16, 17-44.
  • Aktas, R., M. Kargin (2011), “Timeliness of Reporting and the Quality of Financial Information”, International Research Journal of Finance and Economics, 63(8), 71-77.
  • Annaert, J., M.J.K., De Ceuster, R. Polfliert, G. Van Campenhout (2002), “To be or not to be too late: The Case of Belgian Semi-Annual Earnings Announcements”, Journal of Business Finance and Accounting, 29(3), 477-495.
  • Ashton, R.H., P.R. Graul, J.D. Newton (1989), “Audit Delay and the Timeliness of Corporate Reporting”, Contemporary Accounting Research, 5(2), 657-673.
  • Atiase, R.K., L.S. Bamber, S. Tse (1989), “Timeliness of Financial Reporting, the Firm size Effect and Stock Price Reactions to Annual Earnings Announcements”, Contemporary Accounting Research, 5(2), 526-552.
  • Bagnoli, M., W. Kross, S.G. Watts (2002), “The Information in Management’s Expected Earnings Report Date: A day Late, a Penny Short”, Journal of Accounting Research, 40(5), 1275-1296.
  • Ball, R., P. Brown (1968), “An Empirical Evaluation of Accounting Income Numbers”, Journal of Accounting Research, 6(2), 159-178.
  • Basu, S. (1997). The Conservatism Principle and the Asymmetric Timeliness of Earnings. Journal of Accounting and Economics, 24(1), 3-37.
  • Beaver, W.H. (1968), “The Information Content of Annual Earnings Announcements”, Journal of Accounting Research, 6, 67-92.
  • Brown, P., J.W. Kennelly (1972), “The informational Content of Quarterly Earnings: an Extension and Some Further Evidence”, The Journal of Business, 45, 403-415.
  • Bushman, R. M., Piotroski, J. D. (2006) “Financial reporting incentives for conservative accounting: The influence of legal and political institutions” Journal of Accounting. Dogan, M., E. Coskun, O. Celik (2007), “Is Timing of Financial Reporting Related to Firm Performance?, An Examination on ISE Listed Companies”, International Research Journal of Finance and Economics, 4(12), 221-233.
  • Dumlu, T., M. Saltoglu (2011), “The Timeliness of Annual Reports in Turkey: An Empirical Study”, World of Accounting Science, 13(1), 1-21.
  • Erer, M., E.C. Comert (2014), “Timeliness of Financial Reporting in Turkey”, İktisat İşletme ve Finans Dergisi, 29(337), 73-94.
  • Gigler, F.B., T .Hemmer (2001), “Conservatism, Optimal Disclosure Policy, and the Timeliness of Financial Reports”, The Accounting Review, 76(4), 471-493.
  • Giner, B., W. Rees (2001), “On the Asymmetric Recognition of Good and Bad News in France, Germany and the United Kingdom”, Journal of Business Finance and Accounting, 28(9/10), 1285-1330.
  • Givoly, D., D. Palmon (1982), “Timeliness of Annual Earnings Announcements: Some Empirical Evidence”, The Accounting Review, 57(3), 486-508.
  • Graham, J.R., C.R. Harvey, S. Rajgopal (2005), “The Economic Implications of Corporate Financial Reporting”, Journal of Accounting and Economics, 40(1/3), 3-73.
  • Gulec, O.F. (2017), “Timeliness of Corporate Reporting in Developing Economies: Evidence From Turkey”, Accounting and Management Information Systems, 16(3), 219-239.
  • Haw, I., D. Qi, W. Wu (2000), Timeliness of Annual Report Releases and Market Reaction to Earnings Announcements in an Emerging Capital Market, The Case of China”, Journal of International Financial Management and Accounting, 11(2), 109-131.
  • IASB (2010), Exposure Draft on an Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information, London.
  • Joshi, A. (2005) “Timeliness in Corporate Reporting of Indian Public Financial Institution (IPFI)”. Udyog Pragati, 29(2), 1-11.
  • Karim, W., K. Ahmed, A. Islam (2006) “The Effect of Regulation on Timeliness of Corporate Fnancial Reporting: Evidence from Bangladesh”, JOAAG, 1(1), 15-35.
  • Kasznik, R., L. Baruch (1995), “To Warn or not to Warn: Management Disclosures in the Face of an Earnings Surprise”, The Accounting Review, 70(1), 113-134.
  • Khasharmeh, H.A., K. Aljifri (2010), The Timeliness of Annual Reports in Bahrain and the United Arab Emirates: An Empirical Comparative Study, The International Journal of Business and Finance Research, 4(1), 51-71.
  • Kinney, W.R., L.S. McDaniel (1993) “Audit Delay for Firms Correcting Quarterly Earnings” Auditing: A Journal of Practice and Theory, 12(2), 135-142.
  • Lee, H., M. Vivek, M. Son (2008) “A Comparison of Reporting Lags of Multinational and Domestic Firms”, Journal of International Financial Management and Accounting, 19(1), 28 56.
  • Lont, D., E. Sun (2006), “The Timeliness of New Zealand Companies’ Preliminary Earnings Announcements”, Chartered Accountants Journal, 84(12), 61.
  • McGee, R.W. (2007), “Corporate Governance in Russia: A Case study of Timeliness of Financial Reporting in the Telecom Industry”, International Finance Review, 7, 365-390. Ng, P.H., Y.K. Tai (1994), “An Empirical Examination of the Determinants of Audit Delay in Hong Kong”, British Accounting Review, 26(7), 43-59.
  • Owusu-Ansah, S., S. Leventis (2006), “Timeliness of Corporate Annual Financial Reporting in Greece”, European Accounting Review, 15(8), 273–287.
  • Ozkan,S., Y.Z. Karaibrahimoglu, E.E Acar, I.O. Oz ( 2013), “Finansal Tablo Sunum Tarihini Etkileyen Faktörler: İMKB Firmaları Üzerine Bir Uygulama”, Muhasebe Bilim Dünyası Dergisi, 15(3), 167-185.
  • Patell, J.M., M.A. Wolfson (1982) “Good News, Bad News, and the Intraday Timing of Corporate Disclosures”, The Accounting Review, 57(3), 509-527.
  • Pizzini, M., S. Lin, D.E. Ziegenfuss (2015), “The Impact of Internal Audit Function Quality and Contribution on Audit Delay”, Auditing: A Journal of Practice and Theory, 34(1), 25-58.
  • Pride W.M, R.J Huges, J.R. Kapoor (2015), Foundation of Business, Fifth edition Cengage Learning.
  • Sengupta, P. (2004), “Disclosure Timing: Determinants of Quarterly Earnings Release Dates” Journal of Accounting and Public Policy, 23(6), 457-482.
  • Simnett, R., M. Aitken, F. Choo, M. Firth (1995), “The Determinants of Audit Delay”, Advances in Accounting, 13(1) 1-20.
  • Tuan K. (2016), “Finansal Raporlama Zamanlılığına Farklı Bir Bakış”, Muhasebe ve Finansman Dergisi MUFAD, .99-114.
  • Turel, 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.
  • Turkish Capital Market Law (CML) (2013), “Communiqué on Principles of Financial Reporting in Capital Markets”, Official Gazette edition 28676, 13 June 2013.
  • Turkish Commercial Code (TTC) (2011), Official Gazette edition 27846, 14 February 2011.
  • Vuran B., B. Adiloglu (2013), "Is Timeliness of Corporate Financial Reporting Related to Accounting Variables? Evidence from Istanbul Stock Exchange", International Journal of Business and Social Science, 4(6), 58-70.
  • Wan-Hussin, W. N., Bamahros, H. M. (2013) “Do Investment in and the Sourcing Arrangement of the Internal audit Function Affect Audit Delay?”, Journal of Contemporary Accounting and Economics, 9(1), 19–32.

FİNANSAL RAPORLAMANIN ZAMANINDA YAPILMASININ BELİRLEYİCİLERİ: TÜRKİYE'DEN AMPİRİK KANIT

Year 2019, Volume: 37 Issue: 2, 365 - 386, 28.06.2019
https://doi.org/10.17065/huniibf.399838

Abstract

Zamanında sunum, finansal bilginin ihtiyaca uygunluğunun
önemli bir özelliğidir ve sermaye piyasasının etkin işleyişi açısından kritik
öneme sahiptir. Bu çalışmanın iki temel amacı vardır. Birincisi, Türkiye'de
finansal raporlamanın zamanlılığını belirlemektir. İkincisi ise karlılık,
büyüklük gibi firmaya özgü faktörler ile sektör, endeks ve denetim firmaları
gibi ilgili diğer faktörlerin Türkiye’deki finansal raporlamanın zamanlamasına
ilişkin etkilerini araştırmaktır. Tanımlayıcı analiz sonuçlarına göre konsolide
finansal tablolar hazırlayan şirketlerin % 73'ü, konsolide olmayan finansal
tablolar hazırlayan şirketlerin de % 57'si mali raporlarını yasal sürenin
bitiminden önce yayınlamaktadırlar. Çok değişkenli regresyonun tahmin
sonuçları, kârlılığın, şirket büyüklüğünün, denetim firmasının, şirketlerin
listelendiği endeksin ve sektörün, finansal raporlamanın zamanlamasını
etkilediğini göstermektedir. 

References

  • Abdelsalam, O., A. El-Masry (2008), “The Impact of Board Independence and Ownership Structure on the Timeliness of Corporate Internet Reporting of Irish- Listed Companies” Managerial Finance, 34(12), 907-918.
  • Abdulla, J.Y.A. (1996), “The Timeliness of Bahraini Annual Reports”, Advances in International Accounting, 9(5), 73-88.
  • Afify, H.A.E. (2009), “Determinants of Audit Report Lag: Does Implementing Corporate Governance have Any impact? Empirical Evidence from Egypt”, Journal of Applied Accounting Research, 10(1), 56-86.
  • Ahmed, K. (2003), “The Timeliness of Corporate Reporting: A Comparative Study of South Asia”, Advances in International Accounting, 16, 17-44.
  • Aktas, R., M. Kargin (2011), “Timeliness of Reporting and the Quality of Financial Information”, International Research Journal of Finance and Economics, 63(8), 71-77.
  • Annaert, J., M.J.K., De Ceuster, R. Polfliert, G. Van Campenhout (2002), “To be or not to be too late: The Case of Belgian Semi-Annual Earnings Announcements”, Journal of Business Finance and Accounting, 29(3), 477-495.
  • Ashton, R.H., P.R. Graul, J.D. Newton (1989), “Audit Delay and the Timeliness of Corporate Reporting”, Contemporary Accounting Research, 5(2), 657-673.
  • Atiase, R.K., L.S. Bamber, S. Tse (1989), “Timeliness of Financial Reporting, the Firm size Effect and Stock Price Reactions to Annual Earnings Announcements”, Contemporary Accounting Research, 5(2), 526-552.
  • Bagnoli, M., W. Kross, S.G. Watts (2002), “The Information in Management’s Expected Earnings Report Date: A day Late, a Penny Short”, Journal of Accounting Research, 40(5), 1275-1296.
  • Ball, R., P. Brown (1968), “An Empirical Evaluation of Accounting Income Numbers”, Journal of Accounting Research, 6(2), 159-178.
  • Basu, S. (1997). The Conservatism Principle and the Asymmetric Timeliness of Earnings. Journal of Accounting and Economics, 24(1), 3-37.
  • Beaver, W.H. (1968), “The Information Content of Annual Earnings Announcements”, Journal of Accounting Research, 6, 67-92.
  • Brown, P., J.W. Kennelly (1972), “The informational Content of Quarterly Earnings: an Extension and Some Further Evidence”, The Journal of Business, 45, 403-415.
  • Bushman, R. M., Piotroski, J. D. (2006) “Financial reporting incentives for conservative accounting: The influence of legal and political institutions” Journal of Accounting. Dogan, M., E. Coskun, O. Celik (2007), “Is Timing of Financial Reporting Related to Firm Performance?, An Examination on ISE Listed Companies”, International Research Journal of Finance and Economics, 4(12), 221-233.
  • Dumlu, T., M. Saltoglu (2011), “The Timeliness of Annual Reports in Turkey: An Empirical Study”, World of Accounting Science, 13(1), 1-21.
  • Erer, M., E.C. Comert (2014), “Timeliness of Financial Reporting in Turkey”, İktisat İşletme ve Finans Dergisi, 29(337), 73-94.
  • Gigler, F.B., T .Hemmer (2001), “Conservatism, Optimal Disclosure Policy, and the Timeliness of Financial Reports”, The Accounting Review, 76(4), 471-493.
  • Giner, B., W. Rees (2001), “On the Asymmetric Recognition of Good and Bad News in France, Germany and the United Kingdom”, Journal of Business Finance and Accounting, 28(9/10), 1285-1330.
  • Givoly, D., D. Palmon (1982), “Timeliness of Annual Earnings Announcements: Some Empirical Evidence”, The Accounting Review, 57(3), 486-508.
  • Graham, J.R., C.R. Harvey, S. Rajgopal (2005), “The Economic Implications of Corporate Financial Reporting”, Journal of Accounting and Economics, 40(1/3), 3-73.
  • Gulec, O.F. (2017), “Timeliness of Corporate Reporting in Developing Economies: Evidence From Turkey”, Accounting and Management Information Systems, 16(3), 219-239.
  • Haw, I., D. Qi, W. Wu (2000), Timeliness of Annual Report Releases and Market Reaction to Earnings Announcements in an Emerging Capital Market, The Case of China”, Journal of International Financial Management and Accounting, 11(2), 109-131.
  • IASB (2010), Exposure Draft on an Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information, London.
  • Joshi, A. (2005) “Timeliness in Corporate Reporting of Indian Public Financial Institution (IPFI)”. Udyog Pragati, 29(2), 1-11.
  • Karim, W., K. Ahmed, A. Islam (2006) “The Effect of Regulation on Timeliness of Corporate Fnancial Reporting: Evidence from Bangladesh”, JOAAG, 1(1), 15-35.
  • Kasznik, R., L. Baruch (1995), “To Warn or not to Warn: Management Disclosures in the Face of an Earnings Surprise”, The Accounting Review, 70(1), 113-134.
  • Khasharmeh, H.A., K. Aljifri (2010), The Timeliness of Annual Reports in Bahrain and the United Arab Emirates: An Empirical Comparative Study, The International Journal of Business and Finance Research, 4(1), 51-71.
  • Kinney, W.R., L.S. McDaniel (1993) “Audit Delay for Firms Correcting Quarterly Earnings” Auditing: A Journal of Practice and Theory, 12(2), 135-142.
  • Lee, H., M. Vivek, M. Son (2008) “A Comparison of Reporting Lags of Multinational and Domestic Firms”, Journal of International Financial Management and Accounting, 19(1), 28 56.
  • Lont, D., E. Sun (2006), “The Timeliness of New Zealand Companies’ Preliminary Earnings Announcements”, Chartered Accountants Journal, 84(12), 61.
  • McGee, R.W. (2007), “Corporate Governance in Russia: A Case study of Timeliness of Financial Reporting in the Telecom Industry”, International Finance Review, 7, 365-390. Ng, P.H., Y.K. Tai (1994), “An Empirical Examination of the Determinants of Audit Delay in Hong Kong”, British Accounting Review, 26(7), 43-59.
  • Owusu-Ansah, S., S. Leventis (2006), “Timeliness of Corporate Annual Financial Reporting in Greece”, European Accounting Review, 15(8), 273–287.
  • Ozkan,S., Y.Z. Karaibrahimoglu, E.E Acar, I.O. Oz ( 2013), “Finansal Tablo Sunum Tarihini Etkileyen Faktörler: İMKB Firmaları Üzerine Bir Uygulama”, Muhasebe Bilim Dünyası Dergisi, 15(3), 167-185.
  • Patell, J.M., M.A. Wolfson (1982) “Good News, Bad News, and the Intraday Timing of Corporate Disclosures”, The Accounting Review, 57(3), 509-527.
  • Pizzini, M., S. Lin, D.E. Ziegenfuss (2015), “The Impact of Internal Audit Function Quality and Contribution on Audit Delay”, Auditing: A Journal of Practice and Theory, 34(1), 25-58.
  • Pride W.M, R.J Huges, J.R. Kapoor (2015), Foundation of Business, Fifth edition Cengage Learning.
  • Sengupta, P. (2004), “Disclosure Timing: Determinants of Quarterly Earnings Release Dates” Journal of Accounting and Public Policy, 23(6), 457-482.
  • Simnett, R., M. Aitken, F. Choo, M. Firth (1995), “The Determinants of Audit Delay”, Advances in Accounting, 13(1) 1-20.
  • Tuan K. (2016), “Finansal Raporlama Zamanlılığına Farklı Bir Bakış”, Muhasebe ve Finansman Dergisi MUFAD, .99-114.
  • Turel, 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.
  • Turkish Capital Market Law (CML) (2013), “Communiqué on Principles of Financial Reporting in Capital Markets”, Official Gazette edition 28676, 13 June 2013.
  • Turkish Commercial Code (TTC) (2011), Official Gazette edition 27846, 14 February 2011.
  • Vuran B., B. Adiloglu (2013), "Is Timeliness of Corporate Financial Reporting Related to Accounting Variables? Evidence from Istanbul Stock Exchange", International Journal of Business and Social Science, 4(6), 58-70.
  • Wan-Hussin, W. N., Bamahros, H. M. (2013) “Do Investment in and the Sourcing Arrangement of the Internal audit Function Affect Audit Delay?”, Journal of Contemporary Accounting and Economics, 9(1), 19–32.
There are 44 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Gülhan Suadiye

Publication Date June 28, 2019
Submission Date February 28, 2018
Published in Issue Year 2019 Volume: 37 Issue: 2

Cite

APA Suadiye, G. (2019). DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY. Hacettepe Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 37(2), 365-386. https://doi.org/10.17065/huniibf.399838
AMA Suadiye G. DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. June 2019;37(2):365-386. doi:10.17065/huniibf.399838
Chicago Suadiye, Gülhan. “DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY”. Hacettepe Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi 37, no. 2 (June 2019): 365-86. https://doi.org/10.17065/huniibf.399838.
EndNote Suadiye G (June 1, 2019) DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 37 2 365–386.
IEEE G. Suadiye, “DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY”, Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, vol. 37, no. 2, pp. 365–386, 2019, doi: 10.17065/huniibf.399838.
ISNAD Suadiye, Gülhan. “DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY”. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 37/2 (June 2019), 365-386. https://doi.org/10.17065/huniibf.399838.
JAMA Suadiye G. DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 2019;37:365–386.
MLA Suadiye, Gülhan. “DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY”. Hacettepe Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, vol. 37, no. 2, 2019, pp. 365-86, doi:10.17065/huniibf.399838.
Vancouver Suadiye G. DETERMINANTS OF THE TIMELINESS OF FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM TURKEY. Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 2019;37(2):365-86.

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