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PREDICTIVE ABILITY OF FINANCIAL AND NON-FINANCIAL PERFORMANCE FOR FINANCIAL STATEMENT PUBLICATION TIME FRAME: MODERATING ROLE OF COVID-19 PANDEMIC
Revista de Gestão Social e Ambiental ; 17(2):1-22, 2023.
Article in English | ProQuest Central | ID: covidwho-2325602
ABSTRACT

Objetivo:

Este estudo examinou a capacidade de desempenho financeiro e nao financeiro na previsäo do tempo de publicaçao de relatórios financeiros, moderada pela pandemia da COVID-19. Referenciái teórico A teoria dos sinais postula que a administraçâo desempenha um papel crucial no fornecimento de informaçöes as partes interessadas sobre as condiçöes da empresa (Brigham & Houston, 2001). De acordo com Spence (1973), as empresas estao motivadas a fornecer informaçöes relevantes as partes interessadas. Se as condiçöes de desempenho sao boas, a empresa tende a acelerar o processo de apresentaçao de demonstraçöes financeiras. Por outro lado, se o desempenho for ruim, há uma tendencia a atrasar a publicaçao dos relatórios financeiros. O longo período de tempo para a publicaçao de relatórios financeiros pode indicar más noticias que a empresa tem, de modo que ela ainda tem que publicar as noticias para o público. Scott (2015) sugere que quando os gerentes souberem que há noticias desfavoráveis sobre a condiçao da empresa no futuro, evitarao publicar estas informaçöes ou pelo menos atrasaräo a apresentaçao das demonstraçöes financeiras.

Método:

O desempenho financeiro foi medido por quatro indicadores lucratividade, liquidez e solvencia. Enquanto isso, o desempenho nao financeiro variável foi medido pelo indice de boa governança corporativa (GCG) e pela reputaçao dos auditores. O modelo proposto foi testado com base nos dados quantitativos coletados de 156 empresas de manufatura listadas na Bolsa de Valores da Indonesia (IDX) a partir de 2018 e 2020. A análise de regressao múltipla foi realizada para analisar e interpretar os dados. Resultados e

conclusao:

O resultado indica que a solvencia, a boa governança corporativa e a reputaçao do auditor foram preditores significativos do período de publicaçao do relatório financeiro. Entretanto, a capacidade preditiva de rentabilidade e liquidez no prazo de publicaçao nao foi considerada significativa. Além disso, os resultados mostram que a pandemia da COVID-19 modera a capacidade de rentabilidade e boa governança corporativa na previsao do prazo de publicaçao. Implicates da pesquisa O indicador de desempenho financeiro e nao financeiro dá resultados diferentes na previsäo do RWPLK das empresas de manufatura na Indonesia. ROA e CR nao sao capazes de prever o RWPLK, mas DER, GCG, KAP sao capazes de prever o RWPLK. O papel da pandemia COVID-19 foi capaz de moderar a capacidade de ROA e GCG em prever o prazo para publicaçao de relatórios financeiros, mas foi incapaz de moderar a capacidade de CR, DER e KAP em prever o RWPLK. Originalidade/valor O presente estudo fornece a primeira evidencia empírica sobre o papel moderador da pandemia COVID-19 na capacidade preditiva do desempenho financeiro e nao financeiro para o prazo de publicaçao das demonstraçöes financeiras.Alternate

Purpose:

This study examined the ability of financial and non-financial performance in predicting financial reports publication time frame as moderated by the COVID-19 pandemic. Theoretical framework Signal theory postulates that management serves a crucial role in providing information to stakeholders regarding the condition of the company (Brigham & Houston, 2001). According to Spence (1973), companies are motivated to provide relevant information to stakeholders. If the performance conditions are good, the company tend to speed up the process of presenting financial statements. Conversely, if performance is poor, there is a tendency to delay the financial reports publication. The long span of time for the publication of financial reports can indicate bad news that the company has so that it has yet to publish the news to the public. Scott (2015) suggests that when managers know there is unfavorable news about the condition of the company in the future, they will avoid publishing this information or at least delay the presentation of financial statements. Method/design/

approach:

Financial performance was measured by four indicators profita il ty, liquidity and solvency. Meanwhile, variable non-financial performance was measured by the index of good corporate governance (GCG) and auditor reputation. The proposed model was tested based on the quantitative data collected from 156 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 and 2020. The multiple regression analysis was performed to analyze and interpret the data. Results and

conclusion:

Result indicates that solvency, good corporate governance, and auditor reputation were significant predictors of the time span of financial report publication. However, the predictive ability of profitability and liquidity on the publication timeframe was found to be not significant. Furthermore, the results show that the COVID-19 pandemic moderates the ability of profitability and good corporate governance in predicting the publication timeframe. Research implications Financial and non-financial performance indicator gives different results in predicting the RWPLK of manufacturing companies in Indonesia. ROA and CR are not able to predict RWPLK, but DER, GCG, KAP are able to predict RWPLK. The role of the COVID-19 pandemic was able to moderate the ability of ROA and GCG in predicting the timeframe for publication of financial reports, but was unable to moderate the ability of CR, DER and KAP in predicting RWPLK. Originality/value The present study provides the first empirical evidence on the moderating role of the COVID19 pandemic on the predictive ability of financial and non-financial performance for financial statement publication time frame.
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Full text: Available Collection: Databases of international organizations Database: ProQuest Central Type of study: Prognostic study Language: English Journal: Revista de Gestão Social e Ambiental Year: 2023 Document Type: Article

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Full text: Available Collection: Databases of international organizations Database: ProQuest Central Type of study: Prognostic study Language: English Journal: Revista de Gestão Social e Ambiental Year: 2023 Document Type: Article