Can Financial Technology Reduce Reporting Lags?

We investigate whether firms with greater financial technology (FinTech) application experience a difference in audit and financial reporting’s timeliness from other firms. We also examine the extent to which FinTech’s application relates to reporting lags. Using 32,196 US-listed firm-year observati...

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Bibliographic Details
Published in:Review of Pacific basin financial markets and policies 2023-09, Vol.26 (3)
Main Authors: Liu, Wu-Po, Wu, Shih-Bin, Shih, Kung-Hong, Chen, Ken Y., Huang, Hua-Wei
Format: Article
Language:English
Subjects:
Audits
Companies
Computer security
Financial reporting
Regulation of financial institutions
Technology
Transactions
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Summary:We investigate whether firms with greater financial technology (FinTech) application experience a difference in audit and financial reporting’s timeliness from other firms. We also examine the extent to which FinTech’s application relates to reporting lags. Using 32,196 US-listed firm-year observations from 2012 to 2021, we find that the Top 25 FinTech firms experience greater reporting audit and financial lags than other firms, suggesting that strict financial regulations, cybersecurity concerns, and reconciling mixed transactions affect financial reporting’s timeliness. Moreover, higher-ranked Top 25 FinTech firms experience greater reporting lags than lower-ranked firms. Furthermore, higher-ranked FinTech firms have greater audit and financial reporting lags.
ISSN:0219-0915
1793-6705
DOI:10.1142/S0219091523500170