How do liquidity and leverage affect reporting delays?

Abstract

This study aims to identify factors that impact the reporting delay of financial reports for listed companies. Research on late submission of reports plays an important role not only for companies (finding ways to overcome signs of late submission of reports) but also for related stakeholders. Stakeholders will look for signs that indicate the company is likely to submit reports late and make their decision. The study used regression with Driscoll-Kraay standard errors for adjustment by analyzing 753 listed companies in the Vietnam stock market from 2016 to 2020. The STATA software version 15 is used in this study. The results show that liquidity (LIQ) and leverage (LEV) have a negative impact on reporting delay, while profit (return on total assets) and financial distress (ZSCORE) have no impact on reporting delay. From these results, the author provides some implications to help company owners’ better control the issue of reporting delays. At the same time, investors can also predict the late submission of reports by companies to develop suitable investment strategies. The investor can make investment decisions when the company has not yet reported. Issues of LIQ and LEV will be a signal predicting the reporting delay of reports by the company. From there, investors will have useful information before making their investment decisions.