Variable name, variable description and predicted sign
| Variable name | Variable description | Predicted sign |
|---|---|---|
| Dependent variables | ||
| LEAD TIME | Number of days between the end of the fiscal year and the filing of the annual report | Dependent variable |
| LATE FILING | Dummy variable that is coded 1 if the filing of the annual report exceeds the legal deadline for submission (more than seven months after the end of the fiscal year) and 0 otherwise | Dependent variable |
| Independent research variables | ||
| AUDIT | Dummy variable that is coded 1 if the annual report was audited and 0 otherwise | − (H1a) − (H1b) |
| BIG 4 | Dummy variable that is coded 1 if the annual report was audited by a Big 4 auditing firm and 0 otherwise | − (H2a) − (H2b) |
| PROFITABILITY | Return on total assets | + (H3a) − (H3b) |
| Independent control variables | ||
| ASSETS | Natural log of total assets | Control variable |
| DEBT | Debt to total assets; the debt to total assets ratio has been capped with a minimum of 0% and a maximum of 100% | Control variable |
| MANUFACTURING | Industry dummy variable that is coded 1 if the firm is a manufacturer and 0 otherwise | Control variable |
| MONTH | Dummy variable that is coded 1 the firm has December as the last month of the fiscal year and 0 otherwise | Control variable |
| PAGES | The number of pages in the annual report | Control variable |
| FIRM AGE | The time between the initial creation of the firm and year 2017 | Control variable |
| Variable name | Variable description | Predicted sign |
|---|---|---|
| LEAD TIME | Number of days between the end of the fiscal year and the filing of the annual report | Dependent variable |
| LATE FILING | Dummy variable that is coded 1 if the filing of the annual report exceeds the legal deadline for submission (more than seven months after the end of the fiscal year) and 0 otherwise | Dependent variable |
| AUDIT | Dummy variable that is coded 1 if the annual report was audited and 0 otherwise | − ( |
| BIG 4 | Dummy variable that is coded 1 if the annual report was audited by a Big 4 auditing firm and 0 otherwise | − ( |
| PROFITABILITY | Return on total assets | + ( |
| ASSETS | Natural log of total assets | Control variable |
| DEBT | Debt to total assets; the debt to total assets ratio has been capped with a minimum of 0% and a maximum of 100% | Control variable |
| MANUFACTURING | Industry dummy variable that is coded 1 if the firm is a manufacturer and 0 otherwise | Control variable |
| MONTH | Dummy variable that is coded 1 the firm has December as the last month of the fiscal year and 0 otherwise | Control variable |
| PAGES | The number of pages in the annual report | Control variable |
| FIRM AGE | The time between the initial creation of the firm and year 2017 | Control variable |