Determinants of Financial Reporting Timeliness in Indonesian Capital Market

Abstract

The accelerated growth of Indonesia’s capital market has heightened both investment interest and the complexity of financial activities, positioning financial statements as a critical source of information for investors. Timely submission of financial reports is vital for minimizing uncertainty, addressing information asymmetry, and sustaining investor trust, as mandated by the Indonesia Stock Exchange. Several factors are considered influential in determining reporting timeliness, including profitability, company size, institutional ownership, and the role of audit committees. This study seeks to examine the effects of these variables on the timeliness of financial reporting among firms listed in Indonesia and to provide useful insights for managers, regulators, and investors. Employing a Systematic Literature Review (SLR) method, the research identifies, reviews, and synthesizes prior findings to reveal how these determinants shape reporting timeliness. Results indicate that profitability and firm size significantly improve timeliness, while institutional ownership strengthens external monitoring and audit committees enhance internal governance. Sound corporate governance plays a central role in ensuring transparency and timely financial disclosure.