CEO characteristics and audit report timeliness: Do CEO tenure and financial expertise matter?

BAATWAH, SAEED RABEA and SALLEH, ZALAILAH and Ahmad , Norsiah (2015) CEO characteristics and audit report timeliness: Do CEO tenure and financial expertise matter? Managerial Auditing Journal, 30 (8/9). pp. 998-1022. ISSN 0268-6902

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Abstract

Purpose – It is hypothesized that demographic characteristics of managers play a significant role in performing their duties which among this is financial reporting. This study aims to examine whether CEO characteristics, namely, tenure and financial expertise, are associated with audit report timeliness. Design/methodology/approach – We employ data from companies listed on the Oman capital market between 2007 and 2011, and three proxies for audit report timeliness. Findings – We report that CEO tenure and CEO with financial expertise are associated with timely audit report. Supplementary tests also confirm this result. In addition, we suggest and document that there is an interaction effect between CEO tenure and financial expertise concerning the timeliness of audit report. Using two-stage least square analysis also supports our main results. Research limitations/implications – We test our hypotheses using data from Oman and they are relatively small sample size. Therefore, we manage to consider only few characteristics of the CEO and are unable to employ a more sophisticated approach of testing managers’ effect on company policies. In addition, the generalizability of the study findings should be made carefully. Originality/value – This paper is different from prior studies, in that it extends the audit report timeliness literature by examining whether the CEO tenure and CEO with financial expertise associated with audit report timeliness. Our findings demonstrate that CEO characteristics are important factors for timely audit report.

Item Type: Article
Keywords: CEO tenure; CEO financial expertise; audit report timeliness; Oman
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 02:34
Last Modified: 01 Nov 2015 02:34
URI: http://erep.unisza.edu.my/id/eprint/3621

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