IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 22, Issue 1. Ser. II (January. 2020), PP 23-27 www.iosrjournals.org DOI: 10.9790/487X-2201022327 www.iosrjournals.org 23 | Page The Impact of Financial Factors and Public Ownership on the Timeliness of Financial Reporting: Evidence from Indonesia Noegrahini Lastiningsih Department of Accounting, Faculty of Economics and Business, University Pembangunan Nasional Veteran Jakarta, Indonesia Abstract: The objective of this study has been to examine the combined effect of financial factors and public ownership on the timeliness of financial reporting. The paper used SPSS version 22 to examine the effect of public ownership and financial factors on financial reporting timeliness. A sample of 25 listed Indonesian firms (consumer goods industries) covering the period of 2014 to 2016 was used for the study. The findings of the study showed that public ownership had a negative relationship with the timeliness of financial reporting which is contrary to the result of most previous studies. The results of this study did not find any significant relationships between the financial factors (profitability and capital structure) and financial reporting timeliness. Furthermore, the results of this study provide beneficial information to investors in Indonesia to evaluate financial factors and public ownership on the timeliness of financial reporting. Keywords: Financial Reporting Timeliness, Leverage, Profitability, Public Ownership --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 26-12-2019 Date of Acceptance: 10-01-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction An important characteristic of financial information is the timeliness of the financial reporting. Annual reports that are reported sequentially provide relevant information for users of financial statements. The timeliness of the financial statements can increase the relevance which is a qualitative characteristic of financial reporting regulated by the International Accounting Standards Board (FASB, 2009). Information asymmetry between management and shareholders can be minimised by timely financial reporting by providing information on company performance in Indonesia. Growing capital markets and other factors, such as, reducing insider trading, leakage, and rumours of timely financial reporting are important issues (Owusu-Ansah, 2000). Companies in capital markets in developing countries, such as Indonesia, tend to provide late and less information when releasing their annual reports than companies in developed countries (Errunza & Losq, 1985). Because financial reporting has the aim of providing information to external users in making decisions, creditors and investors, when making predictions and decisions, use the financial information. Therefore, the company ensures the availability of current information and provides financial information to the public as quickly as possible. The company makes financial reports to convey information to the users of the financial statements about the resources it has and the company's performance and shows the results of the accountability of the resources used by the management. The benefits of the information contained in the financial statements diminishes with time. Therefore, the timely delivery of the financial statement is very important. The faster it is delivered, the more the information contained therein is useful, and users of the financial statement can make better decisions, both in terms of quality and timeliness. The Indonesia Stock Exchange noted that there were 7 issuers who were late in delivering their 2011 financial statements and some of them were subject to sanctions. One of several companies whose shares were threatened in the IDX delisting because of late reporting of the financial statement was PT Truba Alam Manunggal Engineering Tbk (TRUB). TRUB conveyed an underperformance in 2011. The Company in the period of December 31, 2011 recorded a net loss of IDR 454.7 billion or a jump of 724.4% when compared to the net loss in the same period in 2010, amounting to IDR 55.15 billion. In TRUB's financial statements published throughout 2011, the Company recorded an increase in net loss per basic share from IDR 3 per share to IDR 29 per share. The total assets of the Company in 2011 fell to IDR 3.96 trillion compared to the same period in the previous year with IDR 6.41 trillion. From previous studies, it can be said that the variables that influence the timeliness of the delivery of financial statements differ. In this study, three variables were used, namely profitability, leverage, and public ownership, and the research was conducted with the title “The impact of financial factors and public ownership on the timeliness of financial statements”.