The Influence of Financial Performance, Company Characteristics, Corporate Governance and Audit Opinion on Audit Delay (In Basic Chemical Companies in Indonesia)

INKUBIS: Jurnal Ekonomi dan Bisnis Volume 8, Issue 1, 357-372 e_ISSN: 2775-3913 https://inkubis.polteksci.ac.id/index.php/ink/index DOI: doi.org/10.59261/inkubis.v8i1.216 The Influence of Financial Performance, Company Characteristics, Corporate Governance and Audit Opinion on Audit Delay (In Basic Chemical Companies in Indonesia) Agus Rahman Alamsyah Institut Teknologi dan Bisnis Asia Malang, Indonesia *Corresponding author: Agus Rahman Alamsyah, Institut Teknologi dan Bisnis Asia Malang, Indonesia. 🖂 Article Information: Article History: Received: April 04, 2026 Revised: April 28, 2026 Accepted: April 30, 2026 Abstract Background: Timely submission of audited financial reports is fundamental to market transparency and stakeholder confidence. Delays in the audit process diminish the relevance of financial information, potentially distorting investor decision-making and undermining capital market efficiency. Despite regulatory frameworks establishing strict deadlines, audit delays remain a persistent issue among Indonesian publicly listed companies. In the basic chemical subsector—strategically important for supporting broader manufacturing activity—understanding Keywords: the drivers of audit delay has both practical and academic significance. financial performance; company Objective: This study aims to analyze the influence of financial characteristics; corporate performance (ROA), company characteristics (firm size), corporate governance; audit opinion; audit governance (audit committee), and audit opinion on audit delays in basic delay chemical manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2016–2023. Methods: Using purposive sampling, 13 of 17 eligible companies were selected, yielding 104 company-year observations. Logistic regression was employed as the primary analytical technique, given the dichotomous nature of the audit delay dependent variable. Results: Financial performance (ROA) and company size do not significantly affect audit delays. Corporate governance, as proxied by audit committee size, has a significant negative effect on audit delays (p = 0.009). The audit opinion variable could not be statistically tested due to the absence of variation—all sampled companies consistently received unqualified opinions throughout the observation period. Conclusion: Corporate governance—specifically the presence of an effective audit committee—is the most critical determinant of audit efficiency in this sector. The homogeneity of audit opinions reflects the subsector's high compliance with financial reporting standards, though it limits the empirical scope of this study. Future research should broaden the sample to allow for greater variation in audit opinion types and incorporate additional governance variables. To cite this article: Alamsyah, A. R. (2026). The Influence of Financial Performance, Company Characteristics, Corporate Governance and Audit Opinion on Audit Delay (In Basic Chemical Companies in Indonesia). INKUBIS: Jurnal Ekonomi dan Bisnis, 8(1), 357-372. https://doi.org/10.59261/inkubis.v8i1.216 INTRODUCTION Financial reports are one of the primary sources of information used by stakeholders to assess the overall condition of a company. In addition to financial reports, stakeholders also consider various other supporting information, such as industry conditions, macroeconomic factors, market share, and the quality of company management (Gantino & Susanti, 2019). Generally, a complete set of financial reports consists of five main components: the statement of financial position (balance sheet), income statement, statement of changes in equity, statement of 357 | INKUBIS: Jurnal Ekonomi dan Bisnis Agus Rahman Alamsyah The Influence... cash flows, and notes to the financial statements (CALK). In addition, companies often include additional reports to provide more comprehensive information, such as a statement of retained earnings and a summary of management meeting results (Halim, 2021; Kawatu, 2019). Recent scholarship has reinforced the strategic importance of timely financial reporting in the digital era. Singh et al. (2022) demonstrated that audit delays are negatively associated with financial reporting quality, showing that auditors with higher workloads take longer to complete audits and that this lag is associated with poorer earnings quality outcomes. Leng & Zhang (2024) found that enterprise digital transformation significantly improves audit efficiency by reducing audit workload complexity and streamlining documentation processes. In the context of the COVID-19 pandemic and its aftermath, Lin et al. (2025) showed that auditors faced unprecedented challenges including supply chain disruptions and remote work constraints that increased audit complexity, reinforcing the continued relevance of examining sector-specific audit delay drivers in the post-pandemic recovery period. Financial reports play a crucial role as a means of conveying information regarding a company's financial position, operational performance, and business development. This information needs to be conveyed to interested users to support effective and informed decisionmaking. In this context, financial reports serve as a communication medium between internal management and external stakeholders. Therefore, management often implements specific strategies in presenting financial reports to ensure they appear trustworthy, credible, and reflect a positive corporate image (Kieso et al., 2019). In addition to being well-prepared, financial reports also need to be delivered in a timely manner because they play a crucial role in supporting various business activities. Delays in the publication of financial reports can impact investment activity, particularly for investors who rely heavily on such information for investment decision-making. Delays in the delivery of financial reports reflect inconsistencies and can reduce their usefulness. Based on the principle of relevance, financial information should be delivered promptly to those who need it. If financial reports are not presented on time, their relevance will decrease and they will no longer meet the timeliness requirement needed to provide useful company information (Barth et al., 2001; Mohamad et al., 2019). Issues that can lead to the delay in financial reports are barriers encountered during the audit process. These financial reports need to be audited by an independent auditor before the public can receive them. As a result, this audit process typically takes a long time because the auditor needs to confirm that financial reports have been prepared in accordance with relevant accounting standards and regulations. The structured stages of the audit and separate detailed procedures performed by the auditor can lengthen the time taken to finalize the financial reports. Consequently, the release of financial reports to the public may take longer. According to OwusuAnsah (2000), audit delay i (...truncated)