THE EFFECT OF PROFITABILITY RATIO, LIQUIDITY RATIO, CERTIFIED PUBLIC ACCOUNTANT FIRM SIZE, AND AUDIT OPINION TOWARD TIMELINESS OF AUDITED FINANCIAL REPORTING MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE FROM 2010 - 2012

Abstract

The purpose of the financial statement is to give information about the financial position, income statement and cash flow of the company that useful for the users in the decision making process. The role of financial statements is important for the users, such as investors and creditors. They are using financial statements to decide whether to invest or give a loan for the company. The timeliness of submission financial report are the important thing that has to be fulfilled by the company because having relevant information available sooner can enhance its capacity to influence decisions, and a lack of timeliness can rob information of its usefulness. The aim of this thesis is to get empirical evidence whether profitability ratio measured by Return on Assets (ROA), Liquidity Ratio measured by Current Ratio (CR), Certified Public Accountant firm size, and audit opinion determine the timeliness of audited financial reporting. Manufacturing companies listed in Indonesia Stock Exchange used as a population sample in this thesis. By using purposive sampling, data observed are amounted to 270 companies for 3 years period, 2010, 2011, and 2012. Secondary data collection method in this thesis is using annual financial statements and logistic regression technique to analyze the data. The result shows that profitability, liquidity, and audit opinion have affect toward the timeliness of financial reporting on manufacturing companies listed in IDX from 2010-2012, however, the CPA firm size has not affect the timeliness of financial reporting. The next researcher is expected to add the period more than three years observation to get a better result and use another measurement to measure the profitability and liquidity of the company.