Managerial Ability and Financial Reporting Timeliness

The timely provision of financial information in annual reporting as an information advantage has always been the focal point of investors. This feature, under the influence of managerial capability, can directly affect the effectiveness of disclosure of external information. In this regard, the present study aims to investigate the effect of management's ability to timely financial reporting.

For this purpose, the data of 127 companies listed in Tehran Stock Exchange were used during the 10-year period of 2008-2018 Measuring the ability of managers with the model of Demerjian et al. (2013) and data coverage analysis (DEA) was performed.

The results of the hypothesis test showed that powerful managers have an inactive effect on the delay of the announcement of profit and the audit report, resulting in the disclosure of more timely financial information.

Overall, the results show that increasing managers' ability to have a positive impact on the timeliness of financial reporting, and timely publication of financial information results in a reduction of information asymmetry between the company and investors.