The Effect of Firm Characteristics on the Release Time of Financial Reports: An Empirical Analysis on the Companies Traded in Borsa Istanbul

Öz

In today's globalizing economy, the importance of timely and accurate financial reporting has become more crucial than ever. These reports provide a detailed insight into a company's financial health and performance, offering critical information to investors, creditors, and other relevant parties to make informed decisions. While determining the publication timing of financial reports, strategies are set based on the weight of good and bad news. Companies tend to announce positive news quickly, especially during open market periods, to support their corporate reputation and boost the confidence of shareholders and potential investors. On the other hand, companies might be inclined to withhold or announce bad news during closed market periods to minimize or delay negative market reactions. Through these strategies, firms aim to create either a positive or negative impact on shareholders and investors and control the effect of news most efficiently. The purpose of this study is to examine whether the timing of financial reporting varies depending on firm characteristics. Logistic regression analysis was conducted using data from 2345 observation obtained from companies traded on Borsa Istanbul between 2009 and 2019. The results of the study indicate that firm characteristics such as firm size and financial leverage have a significant effect on whether financial reports are announced on weekdays or weekends. These findings reveal that the timing strategies in financial reporting can vary depending on certain characteristics of the firm. Notably, they highlight that when deciding how and when to announce positive or negative news, companies consider both their own characteristics and market conditions.

Anahtar Kelimeler

• Firm Characteristics
• Financial Reports
• Timeliness
• Good News
• Bad News

Firma Özelliklerinin Finansal Raporların Yayınlanma Zamanlamasına Etkisi: Borsa İstanbul'da İşlem Gören Şirketler Üzerine Ampirik Bir Analiz

Öz

Günümüzün globalleşen ekonomisinde zamanında ve doğru finansal raporlamanın önemi her zamankinden daha fazla artmıştır. Bu raporlar, bir şirketin finansal sağlığı ve performansını detaylı olarak ortaya koymakta ve yatırımcılara, kredi sağlayıcılara ve diğer ilgili taraflara bilinçli kararlar almak için kritik bilgiler sunmaktadır. Finansal raporların yayınlanma zamanlamasını belirlerken iyi ve kötü haberlerin ağırlıklarına göre bazı stratejiler belirlemektedir. Şirketler, genellikle kurumsal itibarlarını desteklemek ve hissedar ile potansiyel yatırımcıların güvenini artırmak için olumlu haberlerini hızlı ve piyasanın açık olduğu dönemlerde açıklama eğilimindedir. Öte yandan şirketler, olumsuz piyasa tepkilerini en aza indirmek ya da geciktirmek için kötü haberleri saklama ya da piyasanın kapalı olduğu dönemlerde açıklama eğiliminde olabilmektedir. Bu stratejiler sayesinde firmalar, hissedarların ve yatırımcıların üzerinde olumlu veya olumsuz bir etki yaratmayı ve haberlerin etkisini en iyi şekilde kontrol etmeyi amaçlamaktadır. Bu çalışmanın amacı, finansal raporlama zamanlılıklarının firma özelliklerine bağlı olarak değişip değişmediğini incelemektedir. Bu amaçla 2009-2019 yılları arasında Borsa İstanbul'da işlem gören şirketlerden elde edilen 2345 firma/yılı verisi kullanılarak lojistik regresyon analizi gerçekleştirilmiştir. Araştırmanın sonuçları, firma büyüklüğü ve finansal kaldıraç gibi firma özelliklerinin finansal raporların hafta içi veya hafta sonu açıklanma zamanlaması üzerinde anlamlı bir etkisi olduğunu göstermektedir. Bu bulgular, finansal raporlamada zamanlama stratejilerinin, firmanın bazı özelliklerine bağlı olarak değişiklik gösterebileceğini ortaya koymaktadır. Özellikle, firmaların olumlu veya olumsuz haberleri nasıl ve ne zaman açıklayacaklarına karar verirken kullandıkları stratejilerin hem kendi özelliklerini hem de piyasa koşullarını göz önünde bulundurduklarını göstermektedir.

Anahtar Kelimeler

• Firma Özellikleri
• Finansal Raporlar
• Zamanlılık
• İyi Haber
• Kötü Haber

Kaynakça

1. Abernathy, J. L., Beyer, B., Masli, A., Stefaniak, C. (2014). The association between characteristics of audit committee accounting experts, audit committee chairs, and financial reporting timeliness. Advances in Accounting, 30(2), 283-297.
2. Abernathy, J. L., Kubick, T. R., Masli, A. (2018). Evidence on the relation between managerial ability and financial reporting timeliness. International Journal of Auditing, 22(2), 185-196.
3. Afify, H. A. E. (2009). Determinants of audit report lag. Journal of Applied Accounting Research, 10(1), 56-86.
4. Al-Ajmi, J. (2008). Audit and reporting delays: Evidence from an emerging market. Advances in Accounting, 24(2), 217-226.
5. Annaert, J., De Ceuster, M. J. K., Polfliet, R., Van Campenhout, G. (2002). To Be or Not Be ... ‘Too Late’: The Case of the Belgian Semi-annual Earnings Announcements. Journal of Business Finance & Accounting, 29(3 & 4), 477-495.
6. Ashton, R. H., Graul, P. R., Newton, J. D. (1989). Audit delay and the timeliness of corporate reporting. Contemporary Accounting Research, 5(2), 657-673.
7. Ashton, R. H., Willingham, J. J., Elliott, R. K. (1987). An empirical analysis of Audit Delay. Source: Journal of Accounting Research, 25(2), 275-292.
8. Baatwah, S. R., Salleh, Z., Ahmad, N. (2015). CEO characteristics and audit report timeliness: Do CEO tenure and financial expertise matter?. Managerial Auditing Journal, 30(8/9), 998-1022.

9. Basuony, M. A. K., Mohamed, E. K. A., Hussain, M. M., Marie, O. K. (2016). Board characteristics, ownership structure and audit report lag in the Middle East. International Journal of Corporate Governance, 7(2), 180-205.
10. Beasley, M. S., Carcello, J. V., Hermanson, D. R., Neal, T. L. (2009). The Audit Committee Oversight Process. Contemporary Accounting Research, 26(1), 65-122.
11. Ben Rejeb Attia, M., Lassoued, N., Sassi, H. (2019). Financial reporting timeliness and the value relevance of earnings: Evidence from banks in the MENA countries. The International Trade Journal, 33(3), 277-301.
12. Bonsn-Ponte, E., Escobar-Rodrguez, T., Borrero-Domnguez, C. (2008). Empirical Analysis of Delays in the Signing of Audit Reports in Spain. International Journal of Auditing, 12(2), 129-140.
13. Carslaw, C. A. P. N., Kaplan, S. E. (1991). An Examination of Audit Delay: Further Evidence from New Zealand. Accounting and Business Research, 22(85), 21-32.
14. Chalu, H. (2021). Board characteristics, auditing characteristics and audit report lag in African Central Banks. Journal of Accounting in Emerging Economies, 11(4), 578-609.
15. Clatworthy, M., Jones, M. J. (2003). Financial reporting of good news and bad news: evidence from accounting narratives. Accounting and Business Research, 33(3), 171-185.
16. DeZoort, F. T., Salterio, S. E. (2001). The effects of corporate governance experience and financial-reporting and Audit Knowledge on Audit Committee Members’ Judgments. Auditing: A Journal of Practice & Theory, 20(2), 31-47.
17. Durand, G. (2019). The determinants of audit report lag: A meta-analysis. Managerial Auditing Journal, 34(1), 44-75.
18. Financial Accounting Standards Board (FASB). (2010). Conceptual framework for financial reporting. Alınan Yer: http://www.fasb.org/resources/ccurl/515/412/Concepts%20Statement%20No%208.pdf
19. Firnanti, F., Karmudiandri, A. (2020). Corporate governance and financial ratios effect on Audit Report Lag. Accounting and Finance Review, 5(1), 15–21.
20. Fujianti, L., Satria, I. (2020). Firm size, profitability, leverage as determinants of Audit Report Lag: Evidence from Indonesia. International Journal of Financial Research, 11(2), 61-67.
21. Givoly, D., Palmon, D. (1982). Timeliness of annual earnings announcements: Some empirical evidence. The Accounting Review, 57(3), 486-508.
22. Gujarati, D. N. (1995). Basic econometrics, New York: McGraw-Hill, ISBN 0-07-025214-9.
23. Güleç, Ö. F. (2017). Timeliness of corporate reporting in developing economies: Evidence from Turkey. Journal of Accounting and Management Information Systems, 16(3), 219-239.
24. Habib, A., Bhuiyan, Md. B. U., Huang, H. J., Miah, M. S. (2019a). Determinants of audit report lag: A meta-analysis. International Journal of Auditing, 23(1), 20-44.
25. Habib, A., Bhuiyan, Md. B. U., Huang, H. J., Miah, M. S. (2019b). Determinants of audit report lag: A meta-analysis. International Journal of Auditing, 23(1), 20-44.
26. Haw, I.-M., Qi, D., Wu, W. (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), 108-131.
27. Hay, D. (2013). Further evidence from meta-analysis of audit fee research. International Journal of Auditing, 17(2), 162-176.
28. Kanojia, S., Lakshmi, V., Sachdeva, S., Verma, M. (2023). Tensegrity of internal control system, board’s ability and corporate governance practices. Global Business Review, 0(Ahead of Print).
29. Kim, M. P., Pierce, S. R., Yeung, I. (2021). Why firms announce good news late: Earnings management and financial reporting timeliness*. Contemporary Accounting Research, 38(4), 2691-2722.
30. Knechel, W. R., Payne, J. L. (2001). Additional evidence on audit report lag. AUDITING: A Journal of Practice & Theory, 20(1), 137–146.
31. Knechel, W. R., Sharma, D. S., Sharma, V. D. (2012). Non-audit services and knowledge spillovers: Evidence from New Zealand. Journal of Business Finance & Accounting, 39(1-2), 60-81.
32. Kothari, S. P., Shu, S., Wysocki, P. D. (2009). Do managers withhold bad news? Journal of Accounting Research, 47(1), 241-276.
33. Krishnan, J. (2005). Audit committee quality and ınternal control: An empirical analysis. The Accounting Review, 80(2), 649-675.
34. Lee, H.-Y., Mande, V., Son, M. (2008). A comparison of reporting lags of multinational and domestic firms. Journal of International Financial Management & Accounting, 19(1), 28-56.
35. 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.
36. Li, T., Xiang, C., Liu, Z., Cai, W. (2020). Annual report disclosure timing and stock price crash risk. Pacific-Basin Finance Journal, 62, 101392.
37. Ocak, M., Özden, E. (2018). Signing auditor-specific characteristics and audit report lag:A research from Turkey. Journal of Applied Business Research, 34(2), 277-294.
38. Owusu-Ansah, S. (2000). Timeliness of corporate financial reporting in emerging capital markets: Empirical evidence from the Zimbabwe Stock Exchange. Accounting and Business Research, 30(3), 241-254.
39. Prosad, J. M., Kapoor, S., Sengupta, J. (2015). Theory of behavioral finance. In handbook of research on behavioral finance and ınvestment strategies: Decision making in the financial ındustry (1-24). IGI Global.
40. Rochmah Ika, S., Mohd Ghazali, N. A. (2012). Audit committee effectiveness and timeliness of reporting: Indonesian evidence. Managerial Auditing Journal, 27(4), 403-424.
41. Shukeri, S. N., Nelson, S. P. (2011). Timeliness of Annual Audit Report: Some empirical evidence from Malaysia. Entrepreneurship and Management International Conference (EMIC 2), Kangar, Perlis Malaysia.
42. Song, F., Zhou, J. (2021). Principles-based accounting standards and the timeliness of annual reports: Evidence from China. Asian Review of Accounting, 29(3), 399-442.
43. Sultana, N., Singh, H., Van der Zahn, J.-L. W. M. (2015). Audit Committee Characteristics and Audit Report Lag. International Journal of Auditing, 19(2), 72–87.
44. Türel, A. (2010). Timeliness of financial reporting in emerging capital markets: Evidence from Turkey. Journal of the School of Business Administration, 39(2), 227-240.
45. Ünlütürk, A. Ç. (2020). Finansal ve finansal olmayan bilgilerin şirket raporlamalarında bir arada kullanılması: Savunma sanayi şirketleri üzerine bir inceleme (Yayımlanmamış Yüksek Lisans Tezi). Başkent Üniversitesi, Ankara.
46. Vuran, B., Adiloğlu, B. (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.