Analysis of the Effect of Company Size and Age on Audit Delay by Mediating Profitability on Companies Listed in the Indonesian Stock Exchange

Abstract

Aims: This study aims to analyze profitability mediating the influence of company size and age to delay audits. Study Design:  The design of this research study is correlational. Place and Duration of Study: Indonesian Stock Exchange (IDX) issuers in 2019. Methodology: Its population of 792 companies listed on the Indonesian Stock Exchange (IDX) in 2019, while sample 286 was selected through purposive sampling. The data type is secondary data, collected using documentation and data analysis using multiple linear regression. Results: Analysis result, size company influential positive significant to profitability. Age company influential positive significant to profitability. Size of company influential negative significant to delay audits. Age company influential negative significant to delay audits. Profitability is an influential negative significant to delay audits. Profitability mediates the negative influence of the size and age company to delay audits. Conclusion: The results of this study support resource-based view (RBV) theory and signalling theory in explaining audit delay by providing empirical evidence regarding the role of profitability in mediating the effect of firm size and firm age on audit delay.