Corporate governance mechanisms and audit report timeliness: Empirical evidence from Oman

Norsiah, Ahmad and Saeed Rabea, Baatwah and Zalailah, Salleh (2015) Corporate governance mechanisms and audit report timeliness: Empirical evidence from Oman. International Journal of Accounting, Auditing and Performance Evaluation, 11 (3). pp. 312-337. ISSN 17408008

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Abstract

This study provides empirical evidence from Middle East and North Africa(MENA) testing of whether 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 document board characteristics such as size and expertise and audit committee financial expertise negatively associated with audit report timeliness. However, the association between board independence, meetings, audit committee independence, size, meetings and external auditor with audit report timeliness is insignificant. We find that audit committee quality enhances audit report timeliness while board quality does not. We also demonstrate that corporate governance mechanisms play a substitution role rather than a complementary role. Thus, we conclude that corporate governance mechanisms in MENA countries are not effective as in more developed countries and that regulators in such countries should impose and encourage substantial corporate governance practices instead of pro-forma practices.

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