Corporate governance mechanisms and audit report timeliness: empirical evidence from Oman
by Saeed Rabea Baatwah; Zalailah Salleh; Norsiah Ahmad
International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), Vol. 11, No. 3/4, 2015

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.

Online publication date: Wed, 02-Sep-2015

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