Effect of Audit Committee Quality and Corporate Ownership on the Timeliness of Financial Reporting: Evidence from India.

Abstract

This study explores the influence of Audit Committee Quality and Corporate Ownership on the timeliness of financial reporting within the Indian context. The research employs an extensive dataset comprising 11,361 firm-year observations (representing 986 unique firms) listed on the Bombay Stock Exchange (BSE) from 2008 to 2021. The findings reveal that effective audit committees, characterized by independent chairs, female representation, absence of promoters, financial expertise, and regular high-attendance meetings, contribute to a reduction in Audit Report Lag (ARL). Moreover, the study identifies variations in ARL across different types of firms, highlighting that state-owned firms experience longer ARLs, while Business Groups (BGs) and foreign firms exhibit comparatively shorter ARLs.