Timeliness of Financial Reporting: The Interplay Between Tax Avoidance and Public Accounting Firm Reputation

Abstract

This study aims to analyze the effect of tax avoidance and the reputation of public accounting firms (PAFs) on the timeliness of financial reporting, as well as to examine the moderating role of PAF reputation in the relationship between tax avoidance and reporting timeliness. Timely financial reporting is a critical indicator of transparency and corporate governance, particularly for publicly listed companies that are subject to annual financial reporting regulations. This research employs a quantitative associative approach using secondary data from companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2023 period. The sample was selected using a purposive sampling method, resulting in 108 firms that met the research criteria. The findings reveal that tax avoidance has a significant negative effect on financial reporting timeliness. Although the direct influence of PAF reputation on timeliness is not statistically significant, PAF reputation is found to significantly moderate the relationship between tax avoidance and timely reporting.