Accounting and Auditing Research

Accounting and Auditing Research

Investigating The Impact Of Audit Committee Chair Characters On The Relationship Between Delay In Financial Reporting And Value Relevance

Document Type : Original Article

Authors
Mahdi Salehi 1
Masoud Rahnema 2
Reza Abdolla Nezhad 2
1 Associate Professor Accounting and Management Department Ferdowsi University of Mashhad, Iran
2 Department of Accounting, Qaenat Branch, Islamic Azad University, Qaenat, Iran
10.22034/iaar.2020.128198
Abstract
The purpose of this study is to investigate the impact of audit committee chair on the relationship between latency in financial reporting and value communication. When reporting delays occur, investors are reacting negatively. On the other hand, the expertise of the head of the audit committee, through improving the quality of financial reporting, can have an impact on value communication and also reduce the delay in financial reporting. This research is of a causal nature, then an event and an applied one. For this research, a sample of 156 companies listed in Tehran Stock Exchange during the period of 2012 to 2016 was selected. Based on combined data analysis and multivariate linear regression analysis, the findings showed that the delay in reporting led to a reduction in value communication. The expertise of the head of the audit committee is positively affected by value communication, but the expertise of the head of the audit committee does not affect the relationship between the delay in financial reporting and value communication.               
Keywords
Value Relationship
Audit Committee Chair Characters
Delay in Financial Reporting
Representation Theory
Accounting and Auditing Research
Volume 12, Issue 48
Winter 2021
Pages 107-120