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THE EFFECT OF CORPORATE GOVERNANCE MECHANISM ON AUDIT REPORT LAG IN MANUFACTURING SUB SECTOR COMPANIES LISTED IN IDX (2019)

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ABSTRACT THE EFFECT OF CORPORATE GOVERNANCE MECHANISM ON AUDIT REPORT LAG IN MANUFACTURING SUB SECTOR COMPANIES LISTED IN IDX (2019) Written by: Melisa Aprillia Dompas NIM: 1732105 This research aims to analyze the effect of Good Corporate Governance Mechanism (GCG) on audit report lag. The GCG is proxied by managerial ownership, institutional ownership, independent commissioner and audit committee. This research used the descriptive method with the quantitative approach. The analytical method used in processing statistical data analysis is the multivariate regression analysis, and the significance test. This research was conducted on Manufacturing sub-sector companies listed in Indonesia Stock Exchange in 2019, with the research sample of 68 companies in it. The average managerial ownership is 18.67% this value shows the average proportion of managerial ownership owned by the company is very small. The average institutional ownership is 57.20% this value shows the average proportion of institutional ownership owned by company is moderate. The average number of independent commissioners in each company meets the standard, which has a ratio of independent commissioners of 0.3941. The average number of audit committee in each company meets the standard, which has a ratio of audit committee 3.01. The average of audit report lag days is 97.31, which means that the manufacturing subsector companies in the Indonesia Stock Exchange submit their financial reports beyond the deadline determined by the Financial Services Authority. The results showed that GCG simultaneously have no significant effect on audit report lag. Besides partially, managerial ownership, institutional ownership, independent commissioner, and audit committee has no significant effect on audit report lag. Keywords: Good Corporate Governance (GCG), managerial ownership, institutional ownership, independent commissioner, audit committee and audit report lag.