Timeliness of Annual Financial Reporting: Evidence from the Tehran Stock Exchange

Abstract

Timeliness is one of the effective factors on transparency of reporting and increases the ability of shareholders in understanding the capacity of the business unit in the production of income, cash flows and financial conditions. This paper examines factors which are related to the timeliness of annual reporting of financial statements in Tehran stock exchange companies. The good news, age, size and opinion of the independent auditor, industry, consolidate the financial reporting and the quality of the costing system during the years 2008 to 2011 have been studied. A regression test is employed in order to test hypotheses. The results show that the effect of independent auditor size and opinion, industry, consolidated financial reporting and costing system confirmed by an independent auditor has been meaningful about financial reporting timeliness. Statistical coefficients indicated that despite unqualified opinion and appropriate costing system, the reporting timeliness has improved. Nevertheless, auditing by a large auditing institution, the consolidated reporting and machinery industry has reduced. However, a significant meaningful relationship between the reporting timeliness and the good and bad news is not observed.