Corporate Governance Mechanisms and Audit Report Timeliness: Empirical Evidence from Oman

Baatwah, Saeed, R. and Salleh, Zalailah and Ahmad, Norsiah (2015) Corporate Governance Mechanisms and Audit Report Timeliness: Empirical Evidence from Oman. International Journal of Accounting, Auditing and Performance Evaluation, 11 (3/4). pp. 312-337. ISSN 1740-8008 (Printed) 1740-8016 (Online)

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This study provides empirical testing of evidence on whether internal and external corporate governance mechanisms are associated with audit report timeliness. We employ data from companies listed on the Omani capital market. Using a panel data approach, we discover that only internal corporate governance mechanisms are negatively associated with audit report timeliness. More specifically, we find board characteristics such as size and expertise, and audit committee characteristics such as financial expertise, are associated with improved audit report timeliness. By using a composite measure for internal corporate governance mechanisms, we also find that audit committee quality enhances audit report timeliness whereas board quality does not. We further demonstrate that corporate governance mechanisms play a substitution role rather than a complementary role in explaining audit report timeliness. Thus, we conclude that corporate governance mechanisms in Oman are not as effective as in more developed countries and that regulators in such a less developed country should impose and encourage substantial corporate governance practices instead of merely adhering to pro-forma practices.

Item Type: Article
Keywords: Corporate governance mechanisms; audit report timeliness; ART; Oman; MENA countries
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Faculty / Institute: Faculty of Law, Accountancy & International Relations
Depositing User: NORSIAH AHMAD
Date Deposited: 01 Nov 2015 02:36
Last Modified: 01 Nov 2015 02:36

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