The Moderating Effect of the Ownership Structure on Audit Committee Characteristics and Audit Report Lag: Evidence from Jordan

Purpose The purpose of paper is to investigate the effect of some characteristics of the audit committee, including size, independence, and financial expertise, on the audit report lag in industrial companies in Jordan. It also verifies whether the institutional ownership level influences the connection between these traits of the audit committee and the period that could be used to release audit reports. Research/Methodology/Approach: The study is quantitative in nature and relies on the figures using the annual financial statements of 39 listed industrial companies on the Amman Stock Exchange in 2019–2023. In order to test the concepts, multiple linear regression models are employed. It also inspects the data using descriptive statistics and diagnostic tests to ensure reliability of the results. Additional variables such as board size are incorporated so as to make the results more precise. Results The results indicate that size and financial knowledge of audit committee are two of the features that have a large effect on the speed at which audit reports are published. In addition, institutional ownership contributes to the increased strength of this impact. The key lesson is that good corporate governance practices are relevant in enhancing efficiency of financial reporting. Practical Implications: The study can be used by policymakers, those concerned with regulations, and policymakers involved in corporate governance in the developing nations. Companies can accelerate the release of audit reports and render the financial information more transparent by enhancing the composition and qualification of the audit committees and motivating the active participation of the institutional investors. Originality/Value: This study adds to the current knowledge because it uses institutional ownership in the determination of the impact of the characteristics of the audit committee on audit report lag. It offers a real-life evidence of a developing country, discussing the role of the institutional investors in lessening the problems between the company management and the shareholders and also accelerating the financial reporting.