Measuring Market Trust: The Impact of Audit Timeliness and Auditor Reputation on Investor Reaction
-
Devita Valenstya
*
Universitas Widya Dharma Pontianak, Pontianak,
Indonesia
- Ricky Ricky Universitas Widya Dharma Pontianak, Pontianak, Indonesia (*) Corresponding Author
Abstract
This study aims to examine the effect of audit delay, auditor reputation, and market value on investor reaction in companies listed in the Kompas 100 index. The research sample consists of 96 observations obtained through purposive sampling during the period 2022 to 2024. Data were analyzed using panel regression to assess the influence of each independent variable on investor reaction. The findings reveal that audit delay has no significant effect on investor reaction, with an effect value of 0.01 and a significance level of 0.993. Similarly, market value does not affect investor reaction, with an effect value of 0.67 and a significance level of 0.505. In this study, market value refers to market capitalization, and the lack of significant effect can be explained by the fact that the companies included in the Kompas 100 index tend to have relatively stable capitalization, making it less of a key factor in short-term investment decision-making. In contrast, auditor reputation has a positive and significant effect on investor reaction, with an effect value of 2.71 and a significance level of 0.008, indicating that auditor quality is an important consideration for investors in making investment decisions. These results emphasize the crucial role of reputable auditors in maintaining market confidence and providing positive signals regarding corporate performance and transparency.
Downloads
References
Abdillah, M. R., Mardijuwono, A. W., & Habiburrochman, H. (2019). The Effect Of Company Characteristics And Auditor Characteristics To Audit Report Lag. Asian Journal Of Accounting Research, 4(1), 129–144. Https://Doi.Org/10.1108/Ajar-05-2019-0042
Akuntansi Dan Keuangan Kontemporer, J., Nurrohimah, B., Muniroh Prodi Akuntansi, H., Nurrohimah Prodi Akuntansi, B., Yppi Rembang Jl Pamotan, U., Timur, T., Rembang, K., Rembang, K., & Tengah, J. (2023). Faktor-Faktor Yang Mempengaruhi Audit Delay. In Jurnal Akuntasi Dan Keuangan Kontemporer (Jakk) (Vol. 6, Issue 1).
Almarzouq, M. N., Alazemi, S., Alrefai, A., & Alawadhi, A. (2025). Timeliness In Financial Reporting In Emerging Markets: Investigating The Effect Of Joint Audits. Asian Journal Of Accounting Research, 10(2), 186–199. Https://Doi.Org/10.1108/Ajar-12-2023-0401
Aschauer, E., & Quick, R. (2023). Implementing Shared Service Centres In Big 4 Audit Firms: An Exploratory Study Guided By Institutional Theory. Accounting, Auditing And Accountability Journal, 37(9), 1–28. Https://Doi.Org/10.1108/Aaaj-07-2021-5376
Ayuni, F., & Dian Fitria Handayani. (2023). Pengaruh Fee Audit, Rotasi Audit, Reputasi Auditor Dan Spesialisasi Auditor Terhadap Kualitas Audit. Jurnal Buana Akuntansi, 8(1), 41–56. Https://Doi.Org/10.36805/Akuntansi.V8i1.2958
Bhuiyan, M. B. U., Man, Y., & Lont, D. H. (2024). Audit Report Lag And The Cost Of Equity Capital. Journal Of Capital Markets Studies, 8(2), 212–241. Https://Doi.Org/10.1108/Jcms-02-2024-0008
Devitamala, N. (2022). The Effect Of Laverage, Profitability And Cash Flow On Going Concern Audit Opinion And Its Implications On Market Reaction. Eduvest-Journal Of Universal Studies, 2(12). Http://Eduvest.Greenvest.Co.Id
Endri, E., Dewi, S. S., & Pramono, S. E. (2024). The Determinants Of Audit Report Lag: Evidence From Indonesia. Investment Management And Financial Innovations, 21(1). Https://Doi.Org/10.21511/Imfi.21(1).2024.01
Fitri Yulandari, L., Gunawan, H., Studi Akuntansi Manajerial, P., & Negeri Batam Jl Ahmad Yani, P. (2019). Pengaruh Intellectual Capital Terhadap Nilai Pasar Dan Kinerja Keuangan Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Journal Of Applied Managerial Accounting, 3(1).
Handoko, B. L., Muljo, H. H., & Lindawati, A. S. L. (2019). The Effect Of Company Size, Liquidity, Profitability, Solvability, And Audit Firm Size On Audit Delay. International Journal Of Recent Technology And Engineering, 8(3), 6252–6258. Https://Doi.Org/10.35940/Ijrte.C5837.098319
Indra Nugraha, R., Gulo, N., & Agus Santoso, R. (2024). Analisis Pengaruh Kualitas Audit Terhadap Timeliness Pelaporan Keuangan: Literatur Review Artikel Terindeks Sinta Analysis Of The Influence Of Audit Quality On Financial Reporting Timeliness: Literature Review Sinta Indexed Articles. 6(1).
Khairunnisa, K., Murapi, I., & Auliana, R. A. (2024). Analisa Determianan Audit Delay Dan Pengaruhnya Terhadap Reaksi Investor. Riset, Ekonomi, Akuntansi Dan Perpajakan (Rekan), 5(1), 87–102. Https://Doi.Org/10.30812/Rekan.V5i1.3887
Kitiwong, W., Ekasingh, E., & Sarapaivanich, N. (2025). Analysis Of Non-English Key Audit Matters: Do Key Audit Matters Influence Investor Sentiment? Journal Of International Accounting, Auditing And Taxation, 58. Https://Doi.Org/10.1016/J.Intaccaudtax.2024.100670
Marzuki, M. M. (2022). Audit Committee Diversity, Analysts’ Forecast Accuracy And Earnings Management: Evidence From Malaysia. Journal Of Risk And Financial Management, 15(4). Https://Doi.Org/10.3390/Jrfm15040169
Mauboy, B., & Nugrahanti, Y. W. (2022). Masih Berjayakah Big Four? Afre (Accounting And Financial Review), 5(1), 20–30. Https://Doi.Org/10.26905/Afr.V5i1.7475
Mubarrok, A. Z., & Islam, A. R. (2020). The Effect Of Management Change, Audit Opinion, Company Size, Financial Distress And Auditor Reputation On Auditor Switching. Accruals (Accounting Research Journal Of Sutaatmadja), 4(02), 185–198. Https://Doi.Org/10.35310/Accruals.V4i02.601
Nisfiarani, R. R., Prasteyo, T. J., & Suhendro, S. (2023). Analysis Of Factors That Influence Delays In Submitting Financial Reports And Their Impact On Market Reactions: A Literature Review. International Journal Of Education, Social Studies, And Management (Ijessm), 3(3), 39–52. Https://Doi.Org/10.52121/Ijessm.V3i3.187
Phillips, K., Universitas, ), & Dharma, B. (N.D.). Eco-Buss Pengaruh Ukuran Perusahaan, Profitabilitas Dan Reputasi Auditor Terhadap Audit Delay Dan Dampaknya Pada Abnormal Return. Www.Deepl.Com/Pro
Putri Utami, M., & Sundara, D. (2023). Pengaruh Economic Value Added (Eva) Dan Market Value Added (Mva) Terhadap Return Saham. 3(1), 28–41.
Qomaria1, L., Azari2, C., & Kusuma, Y. B. (N.D.). Analisis Reaksi Pasar Pra Dan Pasca Publikasi Unqualified Opinion (Studi Pada Perusahaan Yang Tergabung Dalam Jakarta Islamic Index (Jii) Tahun 2017-2019).
Ricky. (2025). Dasar-Dasar Akuntansi. Terapan: Pendekatan Sak Etap Dan Psak. Yogyakarta: Penerbit Andi.
Siagian, V. (2023). Auditor’s Reputation And Auditor’s Opinion On Stock Prices: Evidence From Indonesia’s Main Board Index. The Indonesian Accounting Review, 13(2), 221–232. Https://Doi.Org/10.14414/Tiar.V13i2.3345
Thoha, M. N. F., & Handayani, M. E. S. (2023). The Moderation Role Of The Audit Committee In The Relationship Of Audit Reputation And Audit Tenure With Audit Quality. Journal Of Economics And Business Letters, 3(5), 23–27. Https://Doi.Org/10.55942/Jebl.V3i5.246
Tjandrakirana, R. (2025). Pengaruh Opini Audit Terhadap Reaksi Pasar Saham Dan Nilai Perusahaan. Integrative Perspectives Of Social And Science Journal, 2(2).
Venturini, L. D. B., Marques, V. A., & Gama, S. D. (2024). Relationship Of Key Audit Matters And Audit Delay With Financial Restatement. Revista De Contabilidade E Organizacoes, 18. Https://Doi.Org/10.11606/Issn.1982-6486.Rco.2024.227391
Yulianti, E., Siregar, I. W., & Susyani, N. (2022). Analisis Reaksi Pasar Modal Terhadap Berbagai Pengumuman Kasus Covid-19 Pada Fase Awal. Journal Of Business And Banking, 12(1), 51. Https://Doi.Org/10.14414/Jbb.V12i1.2951
Bila bermanfaat silahkan share artikel ini
Berikan Komentar Anda terhadap artikel Measuring Market Trust: The Impact of Audit Timeliness and Auditor Reputation on Investor Reaction
Pages: 743-750
Copyright (c) 2025 Devita Valenstya, Ricky Ricky
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under Creative Commons Attribution 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (Refer to The Effect of Open Access).
