Timeliness of financial reporting and audit committee effectiveness: evidence from UAE

This study aims to examine the contemporary timeliness of financial reporting in the United Arab Emirates (UAE), and the impact of audit committee effectiveness on this timeliness. Timeliness of financial reporting in this study is measured by audit report lag (ARL), which is the number of days betw...

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Main Authors:	Al-Muzaiqer, Mohammed Ali Hussein, Ahmad, Maslina, Abdul Hamid, Fatima
Format:	Article
Language:	English
Published:	UNIMAS Publisher 2018
Subjects:	HF5601 Accounting. Bookkeeping HF5717 Business communication
Online Access:	http://irep.iium.edu.my/70785/ http://irep.iium.edu.my/70785/ http://irep.iium.edu.my/70785/1/Unimas%20Accounting%20Review.pdf

id	iium-70785
recordtype	eprints
spelling	iium-707852019-07-12T08:00:18Z http://irep.iium.edu.my/70785/ Timeliness of financial reporting and audit committee effectiveness: evidence from UAE Al-Muzaiqer, Mohammed Ali Hussein Ahmad, Maslina Abdul Hamid, Fatima HF5601 Accounting. Bookkeeping HF5717 Business communication This study aims to examine the contemporary timeliness of financial reporting in the United Arab Emirates (UAE), and the impact of audit committee effectiveness on this timeliness. Timeliness of financial reporting in this study is measured by audit report lag (ARL), which is the number of days between the date of the financial year end and the date of the audit report. The data from listed companies on the UAE capital markets; Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM), for three years from 2011 to 2013 resulted in 298 observations. The main statistical techniques of the study are means and multiple regressions. The findings show that generally all companies meet the submission deadlines imposed by the two UAE markets. Furthermore, ARL is influenced by audit committee size and profitability, while no evidence is found to support the effect of audit committee expertise, audit committee meetings and firm size on ARL.The results of the study show that only audit committee size has a significant influence in reducing ARL. This may be attributed to having minimal variation in the implementation of the Code of Corporate Governance (CCG), particularly audit committee attributes, in the UAE. The results suggest that the current governance by audit committees is adequate to ensure that the financial reports of companies in the UAE are timely. However, except for audit committee size, the other audit committee attributes are unable to further shorten ARL. The capital markets in the UAE and its CCG are relatively new. Hence, regulatory requirements may be less stringently implemented by companies in this country. Consequently, timely audited financial reports are demanded by local and international investors to make decisions and alleviate speculation. Thus, determining audit committee attributes that reduce ARL is beneficial to the UAE markets, the listed companies and investors. UNIMAS Publisher 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/70785/1/Unimas%20Accounting%20Review.pdf Al-Muzaiqer, Mohammed Ali Hussein and Ahmad, Maslina and Abdul Hamid, Fatima (2018) Timeliness of financial reporting and audit committee effectiveness: evidence from UAE. UNIMAS Review of Accounting and Finance, 1 (1). pp. 99-112. E-ISSN 2590-3543 http://publisher.unimas.my/ojs/index.php/URAF/article/view/931/723
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5601 Accounting. Bookkeeping HF5717 Business communication
spellingShingle	HF5601 Accounting. Bookkeeping HF5717 Business communication Al-Muzaiqer, Mohammed Ali Hussein Ahmad, Maslina Abdul Hamid, Fatima Timeliness of financial reporting and audit committee effectiveness: evidence from UAE
description	This study aims to examine the contemporary timeliness of financial reporting in the United Arab Emirates (UAE), and the impact of audit committee effectiveness on this timeliness. Timeliness of financial reporting in this study is measured by audit report lag (ARL), which is the number of days between the date of the financial year end and the date of the audit report. The data from listed companies on the UAE capital markets; Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM), for three years from 2011 to 2013 resulted in 298 observations. The main statistical techniques of the study are means and multiple regressions. The findings show that generally all companies meet the submission deadlines imposed by the two UAE markets. Furthermore, ARL is influenced by audit committee size and profitability, while no evidence is found to support the effect of audit committee expertise, audit committee meetings and firm size on ARL.The results of the study show that only audit committee size has a significant influence in reducing ARL. This may be attributed to having minimal variation in the implementation of the Code of Corporate Governance (CCG), particularly audit committee attributes, in the UAE. The results suggest that the current governance by audit committees is adequate to ensure that the financial reports of companies in the UAE are timely. However, except for audit committee size, the other audit committee attributes are unable to further shorten ARL. The capital markets in the UAE and its CCG are relatively new. Hence, regulatory requirements may be less stringently implemented by companies in this country. Consequently, timely audited financial reports are demanded by local and international investors to make decisions and alleviate speculation. Thus, determining audit committee attributes that reduce ARL is beneficial to the UAE markets, the listed companies and investors.
format	Article
author	Al-Muzaiqer, Mohammed Ali Hussein Ahmad, Maslina Abdul Hamid, Fatima
author_facet	Al-Muzaiqer, Mohammed Ali Hussein Ahmad, Maslina Abdul Hamid, Fatima
author_sort	Al-Muzaiqer, Mohammed Ali Hussein
title	Timeliness of financial reporting and audit committee effectiveness: evidence from UAE
title_short	Timeliness of financial reporting and audit committee effectiveness: evidence from UAE
title_full	Timeliness of financial reporting and audit committee effectiveness: evidence from UAE
title_fullStr	Timeliness of financial reporting and audit committee effectiveness: evidence from UAE
title_full_unstemmed	Timeliness of financial reporting and audit committee effectiveness: evidence from UAE
title_sort	timeliness of financial reporting and audit committee effectiveness: evidence from uae
publisher	UNIMAS Publisher
publishDate	2018
url	http://irep.iium.edu.my/70785/ http://irep.iium.edu.my/70785/ http://irep.iium.edu.my/70785/1/Unimas%20Accounting%20Review.pdf
first_indexed	2023-09-18T21:40:28Z
last_indexed	2023-09-18T21:40:28Z
_version_	1777413105920245760

Timeliness of financial reporting and audit committee effectiveness: evidence from UAE

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