ANALYSIS OF FINANCIAL LEVERAGE, PROFITABILITY AND AUDITOR'S QUALITY TO TIMELINESS IN SUBMITTING THE FINANCIAL STATEMENT OF PROPERTY COMPANIES LISTED ON INDONESIA STOCK EXCHANGE

Abstract

This research aims to know the empirical evidence of financial leverage, profitability, and auditor‟s leverage that may influencing the timeliness in submitting the financial statements of property companies to Bapepam-LK and Indonesia Stock Exchange. The financial leverage in this research is using debt to equity ratio, profitability using return on assets and auditor‟s quality is using big four or non big four public accounting firm. The author decides to choose those criteria because the author sees that the property companies tend to have low return on assets and high debt to equity ratio compared to other companies whereas the auditor‟s quality is chosen because it is mandatory that the financial statements to be audited by public accounting firm in order to increase the assurance of the financial statements. Sample of this research is using 32 property companies for year 2010, 2011 and 2012. Hence, the total sample is 96 companies that selected by using purposive sampling. The technique used in this research is logistic regression at 5% significance level. The result of this research identify that the profitability (ROA) affects the timeliness of financial statements positively. Meanwhile, the financial leverage and auditor‟s quality do not have an effect to the timeliness of financial statements of property companies that listed on Indonesia Stock Exchange.