THE EFFECT OF COMPANY’S AGE, IFRS IMPLEMENTATION, INDEPENDENT AUDITOR’S QUALITY, INSTITUTIONAL OWNERSHIP, LEVERAGE, AND RETURN ON EQUITY TOWARD AUDIT DELAY: A STUDY OF COMPANIES LISTED IN LQ45 INDEX FROM 2011 – 2013

Abstract

This research aims to identify the effect of company’s age, IFRS implementation, independent auditor’s quality, institutional ownership, leverage, and return on equity toward the length of audit delay in companies that are listed in LQ45 index from 2011 to 2013 either simultaneously and separately. The research involves 75 samples, which consist of 3 years data of 25 companies that are consistently listed in LQ45 index from 2011 to 2013.

The research found that leverage and return on equity are statistically significant toward the length of audit delay, while company’s age, IFRS implementation, independent auditor’s quality, and institutional ownership are not statistically significant toward the length of audit delay. The F-test result revealed that one or more independent variables have significant influence toward the length of audit delay. Then, the R2 analysis showed that the regression model is able to describe audit delay by 28.6%.