The determinants of timeliness of company´s financial reporting service: evidence from China

This study extends the timeliness of annual financial reporting service research to China´s emerging capital market With a sample of listed Chinese firms for 1999-2003, we find that both audit opinions and earnings surprises have significant effects on the timing of financial reporting service, and a significant effect attributable to the magnitude of negative earnings surprises. In particular, it is found that a significant interaction effect exists between audit opinions and earnings surprises, that is, Positive earnings surprises with modified audit opinions are announced significantly later than unqualified negative earnings surprises.