Proceedings of the 8th International Conference on Research in Management and Economics
Year: 2023
DOI:
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The Impact of Audit Report Lag and Investment Efficiency in Publicly Traded Companies: Evidence from the USA
LUO Yige
ABSTRACT:
Our study explores the relationship between Audit Report Lag (ARL) and corporate investment efficiency, particularly emphasizing the impact of delayed financial reporting on stakeholders. We hypothesize a significant association between extended ARL and the gap between anticipated and actual corporate investments, signifying a decline in investment efficiency. Our approach utilizes a comprehensive dataset from a vast array of U.S. companies during 2010-2020, with a particular focus on data from the industrial, healthcare, and IT sectors. We examine the determinants of investment efficiency, including factors such as company size, return on assets, duration since establishment, and financial leverage. This research, by analyzing the influence of ARL within the framework of investment efficiency, introduces a unique perspective to this field, thereby expanding the current understanding of its economic implications. It underscores the importance of continuous financial monitoring for stakeholders, aimed at proactive issue identification, reduction of investment risks, and enhancement of overall efficiency.
keywords: Late Filing, Publicly Traded Companies, Stakeholders, Investment Determinants, Impacts of Audit