Effect Of Audit Delay Reaction To Investors (Study In Non-Financial Companies Listed In Indonesia Stock Exchange IDX)
DOI:
https://doi.org/10.35870/jemsi.v11i6.5333Keywords:
Audit Delay, Reaction Investor and Non-Financial CompanyAbstract
This study aims to determine and analyze the effect of audit delay on investor reaction in non-financial companies listed on the Indonesia Stock Exchange (IDX). The independent variable in this study is audit delay, measured by the difference between the audit report signing date and the balance sheet date, while the dependent variable is investor reaction measured using abnormal returns. The results show that audit delay has a significant negative effect on investor reaction, with a t-value of -2.897 and significance of 0.007 (p < 0.05). This indicates that the longer the audit delay, the stronger the negative reaction from investors. For instance, PT Tambang Bukit Asam Tbk (TABA) experienced an audit delay of 55 days and received the highest negative investor reaction, while companies with shorter audit delays like Martina Berto (MBTO) showed lower negative reactions. The discussion supports the notion that longer audit delays create uncertainty and bad news for investors, affecting their investment decisions. This is consistent with decision-making theory in the context of firms facing problems and uncertainty. In conclusion, audit delay significantly negatively influences investor reaction, implying that delays in audit completion can adversely impact investor perception and investment decisions in the Indonesian capital market.
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