외국인 투자자의 지분율이 감사보고시차에 미치는 영향

Audit report lag is a period from balance sheet date to audit report date. There are many implications for this period. If there is a disagreement between auditor and auditee, audit report date will be delayed. Also, we need additional time due to new legislation of internal control over financial reporting which was adopted in 2005. Audit report lag could be a good proxy for company’s monitoring system. If this monitoring mechanism operates effectively and efficiently, audit report lag will be shortened. After the freeing of investment of foreigner in public company, there are also many implications for this. Although there are many factors that affect audit report lag, audit report lag can be shortened if the ownership of foreign investor is high because of positive relationship between foreign investor ownership and monitoring system. In this study, we found the relationship between audit report lag and ownership of foreigners who monitor the manager’s opportunistic behavior and prefer the company which has low a systematic risk and leverage ratio. In empirical results, ownership of foreign investors was negatively and significantly related with audit report lag. Because of foreign investors’ positive effect on company, this allows auditor lower audit risk, then lead to shortening of audit report lag and improvement of timeliness of financial reporting.