Title: Corporate governance mechanisms and audit report timeliness: empirical evidence from Oman

Authors: Saeed Rabea Baatwah; Zalailah Salleh; Norsiah Ahmad

Addresses: Department of Accounting, Hadhramout University, Hadhramout, Yemen ' Department of Accounting and Finance, Universiti Malaysia Terengganu, Terengganu, Malaysia ' School of Accounting, Universiti Sultan Zainal Abidin, Terengganu, Malaysia

Abstract: 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 associated with timely audit report. 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 composite measure for internal corporate governance mechanisms, we also find that audit committee quality enhances audit report timeliness while 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.

Keywords: corporate governance mechanisms; audit report timeliness; Oman; MENA countries; Middle East; North Africa; auditing; internal mechanisms; board size; financial expertise; audit committee quality; board quality.

DOI: 10.1504/IJAAPE.2015.071580

International Journal of Accounting, Auditing and Performance Evaluation, 2015 Vol.11 No.3/4, pp.312 - 337

Received: 18 Sep 2013
Accepted: 13 Mar 2014
Published online: 02 Sep 2015 *

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