Threshold Effect of CEO Power on Audit Report Lag

Power, as one of the characteristics of CEO, can play a significant role in corporate decisions about financial reporting. If CEO use power in line with their interests, their power will be problematic and affect the audit time of the company. Thus, the present study aimed to investigate the effect of CEO power on audit report lag using Hansen's threshold regression approach. The research sample included 150 companies listed on the Tehran Stock Exchange during 2011-2018. This study was applied and the research hypothesis was tested using the threshold regression analysis. The results of testing the research hypothesis indicated that the CEO power has a negative effect on audit report lag in the companies where the CEO power is lower than the threshold limit while the power of CEO has a positive effect on audit report lag in the companies where the CEO power is higher than the threshold limit.