The impact of COVID-19 pandemic on financial reporting delay. Evidence from Ghana

Ofori, Abel Obeng Amanfo; Arthur, Benedict; Asiedu, Michael; Nyantakyi, George; Opoku, Pious Article The impact of COVID-19 pandemic on financial reporting delay. Evidence from Ghana Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Ofori, Abel Obeng Amanfo; Arthur, Benedict; Asiedu, Michael; Nyantakyi, George; Opoku, Pious (2024) : The impact of COVID-19 pandemic on financial reporting delay. Evidence from Ghana, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-13, https://doi.org/10.1080/23311975.2024.2318019 This Version is available at: https://hdl.handle.net/10419/326089 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 The impact of COVID-19 pandemic on financial reporting delay. Evidence from Ghana Abel Obeng Amanfo Ofori, Benedict Arthur, Michael Asiedu, George Nyantakyi & Pious Opoku To cite this article: Abel Obeng Amanfo Ofori, Benedict Arthur, Michael Asiedu, George Nyantakyi & Pious Opoku (2024) The impact of COVID-19 pandemic on financial reporting delay. Evidence from Ghana, Cogent Business & Management, 11:1, 2318019, DOI: 10.1080/23311975.2024.2318019 To link to this article: https://doi.org/10.1080/23311975.2024.2318019 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group Published online: 26 Feb 2024. Submit your article to this journal Article views: 2247 View related articles View Crossmark data Citing articles: 1 View citing articles Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2318019 The impact of COVID-19 pandemic on financial reporting delay. Evidence from Ghana Abel Obeng Amanfo Oforia, Benedict Arthurb , Michael Asieduc, George Nyantakyid and Pious Opokue ainstitute of accounting and Finance Policy Research, accra, ghana; bFaculty of Humanities, ningxia normal university, ningxia, China; cschool of engineering, Johns Hopkins Whiting, Baltimore, MD, usa; daccounting school, Zhongnan university of economics and Law, Wuhan, China; eschool of accountancy, Jiangxi university of Finance and economics, nanchang, China ABSTRACT The widespread coronavirus (COVID-19) has sparked considerable worry among businesses worldwide, including Ghana. Despite a growing body of information on market and business reactions to the COVID-19 pandemic, there are few to no studies that have empirically examined the direct impact of COVID-19 on a firm’s financial reporting. The paper employed a panel regression model to examine COVID-19 impacts on a firm’s financial reporting delay over 3 years for 100 firms in Ghana comprising 30 listed firms and 70 private firms. The study’s empirical findings indicate COVID-19 and financial report delays have a positive and significant relationship. The study also established that the positive relationship is more pronounced for low-performing and private firms. The study recommended that a firm’s operational strategies be improved and well-coordinated during pandemics to avoid reporting and subsequent operational delays. 1. Introduction The timeliness of financial reporting is a fundamental characteristic that underpins the reliability and relevance of financial information in the global business landscape. It serves as a cornerstone for decision-makers, investors, and various stakeholders, ensuring the transparency, integrity, and efficiency of financial markets (Daoud et al., 2014; Drake et al., 2019). However, the imperative of timely financial reporting is not uniform across diverse economic landscapes, and the challenges in emerging economies underscore the need for a nuanced understanding of the factors influencing reporting timelines (Albu et al., 2014; Errunza & Losq, 1985; Nurunnabi, 2015). Extensive scholarly inquiry has explored the determinants of financial report timeliness, investigating variables such as business size, profitability, internal controls, and auditing standards (Afenya etal., 2022; Albitar etal., 2020; Çelik etal., 2023; Yeboah etal., 2023). Yet, despite these efforts, a critical gap persists in the literature—specifically, a comprehensive empirical evaluation of the direct impact of COVID-19 infection on firms’ financial reporting timeliness which is deeply enshrined in an accounting theoretical evaluation remains absent. This study aims to fill this void by adopting a theoretical lens, specifically linking agency theory with the dynamics of COVID-19 and financial reporting delay. While some prior research has examined the repercussions of the pandemic on business and audit functions (Bajary etal., 2023; Ding etal., 2020; Ruiz et al., 2020), our research uniquely contributes by integrating agency theory into the analysis. This theoretical framework allows us to discern the intricate relationship between COVID-19 infection and © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group CONTACT Benedict arthur ar[email protected] Faculty of Humanities, ningxia normal university, ningxia, China https://doi.org/10.1080/23311975.2024.2318019 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY Received 8 November 2023 Revised 7 February 2024 Accepted 7 February 2024 KEYWORDS COVID-19 pandemic; financial reporting quality; audit timeliness; report delay; Ghana ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS | RESEARCH ARTICLE REVIEWING EDITOR Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland JEL CLASSIFICATIONS G30; M42; M41; M49 2 A. OBENG AMANFO OFORI ETAL. financial report delays, providing a nuanced understanding of the underlying mechanisms governing reporting timelines. In doing so, our study not only addresses the current gap but also adds depth to the scholarly discourse by establishing a theoretical foundation for exploring the impact of global events on financial reporting within the agency theory framework. As the world grapples with the aftermath of the COVID-19 pandemic, businesses face unparalleled challenges in navigating the complexities of financial reporting. The pandemic, with its far-reaching consequences on human life, economies, and societal norms, has triggered an upheaval in the functioning of firms across sectors (Castañeda‐Navarrete et al., 2021; Mackenzie & Smith, 2020). Travel restrictions, remote work mandates, and supply chain disruptions have added layers of complexity to routine business processes, including the financial closing procedures crucial for timely reporting (Rababah etal., 2020). Amid the challenges posed by the COVID-19 pandemic, our research occupies a pivotal position where the intricacies of the pandemic intersect with the priorities of financial reporting. Departing from conventional studies, our study uniquely contributes by conducting a meticulous analysis deeply enshrined on an accounting theoretical evaluation. This departure aims to carve a niche in the literature, offering empirical insights into an unexplored facet of the pandemic’s repercussions on corporate reporting. Also, unlike existing studies that have explored market and business reactions to the pandemic (Decker & Haltiwanger, 2022; Klöckner et al., 2023; Xue et al., 2021), our research stands out by delving into the heart of financial reporting timeliness, adding granularity to the existing knowledge base. By empirically exploring the interplay between COVID-19 infection and financial report delays, our study not only enhances empirical understanding but also establishes a robust theoretical foundation, providing a nuanced perspective for guiding future policy decisions. In elucidating the relationship between COVID-19 infection and financial report delays, our study navigates through the intricate web of factors that contribute to reporting timelines. The study indicates that COVID-19 altered financial reporting patterns. Specifically, the study provides evidence that COVID-19 has impacted the elements of a company’s reporting timeliness. The study shows evidence of a positive and significant relationship with financial report delay COVID-19, implying that the higher the COVID-19 infection in a company, the longer the financial report delay days. This evidence is chiefly attributed to the late filing of records and the auditor’s inability to access the firm’s financial report books quickly, unlike the normal times before the covid pandemic audit. Furthermore, the research discerns variations in the impact across different categories of firms, unraveling disparities in reporting delays based on performance and corporate structure. The remaining portion of the paper is organized as follows: Section 2 provides a literature review and hypothesis development on financial report delays. The articulation of hypotheses is informed by the intricate interplay between agency theory, financial report timeliness, and the unprecedented challenges posed by the COVID-19 pandemic. Section 3 describes research data and methodology; Section 4 provides empirical results and interpretations; and Section 5 offers a conclusion and makes a policy recommendation. 2. Literature review 2.1. Key observations regarding the COVID-19 pandemic in Ghana Ghana is being affected by the Coronavirus pandemic like other countries around the globe since the World Health Organization (WHO) confirmed it as a global pandemic on 11th March 2020 (Lone & Ahmad, 2020). Ghana has suffered under this pandemic as COVID-19 has impacted many economies and claimed millions of lives as the virus spread rapidly all over the world. Before recording the first case on 12th March 2020 (Aduhene & Osei-Assibey, 2021), the government of Ghana took prudent steps to respond to any expected cases. Based on flights and passenger traffic, Ghana evaluated its ability to respond to any suspected or confirmed cases of COVID-19. The Government of Ghana pledged initial funding of 2.8 million Ghanaian cedis to assist in disaster preparedness in the country. In addition, the health authorities have carried out various activities to strengthen systems along the theme lines. In this regard, the government adopted and announced a raft of measures before and after Ghana recorded its first case in line with the objectives of the country’s COGENT BUSINESS & MANAGEMENT 3 response. The prevention and control measures include mandatory 14-day quarantine for Ghanaian citizens and persons with residence permits arriving in the country, ban of points of entry, the ban on travel into Ghana by foreigners from countries with at least 200 cases, international travel by public officials except for special cases was suspended, suspension of all public gatherings for four (4) weeks, closure of all schools except final year students who were preparing for their examinations and many others. Regardless of the measures above, the number of positive cases recorded rose dramatically within 15 days from just two (2) cases on 12th March 2020 to 137 cases on 27th March 2020. Ghana was the second country with the highest number of confirmed cases of coronavirus (COVID-19) in the West African region, after Nigeria, and the seventh country across Africa, behind South Africa, Egypt, Ethiopia, Kenya, Algeria, and Nigeria as of 3rd December 2020. The pandemic has impacted and affected all groups of persons across the Ghanaian social level. As of 3rd December 2020, 51,667 confirmed cases had been reported, with 50,547 recoveries and 323 deceases. The astronomic increase within 15 days proved to be a forerunner of COVID-19 incidence in Ghana and prompted the imposition of restrictions on the movement of persons (lockdown) in the Greater Accra Metropolitan Area and Greater Kumasi Metropolitan Area by the president from 30th March 2020 to 20th April 2020. The COVID-19 pandemic has severely affected Ghana in a multidimensional way. Growth has slowed, financial conditions have tightened, and exchange rates have come under pressure. For example, GDP growth was projected to drop from 6.8% to 0.9% by the end of 2020. A rise in unplanned social and health expenditures, foreign direct investment, linear growth in the hospitality industry, decrease in revenues due to severe shortfalls in tax revenues, oil revenues, and import tariffs. The COVID-19 pandemic has resulted in significant adverse economic and operational impacts on numerous organizations and has presented personal challenges for individuals in accomplishing their tasks amidst this period of uncertainty (Metwally et al., 2021), especially in financial reporting. 2.2. Theoretical analysis and hypothesis development The study draws on agency theory to elucidate the intricate dynamics between management and shareholders, unraveling the inherent challenges arising from information asymmetry (Bendickson etal., 2016). This theory posits that when agents possess valuable information sought by principals, it may lead to a misuse of obligations. Berle and Means (1991) underscored the propensity for managers to pursue self-interests due to the separation of ownership and control in large corporations. The consequence often manifests as conflicting goals with the principle of maximizing shareholders’ wealth (Shleifer & Vishny, 1989), resulting in information imbalances. Regulations mandating timely submission of financial statements serve as a corrective measure to mitigate these information imbalances (Mathuva etal., 2019). However, the advent of the COVID-19 pandemic has introduced unprecedented challenges. The ensuing preventive measures, including business closures and remote work, disrupted the conventional flow of information. This disruption, coupled with the government-imposed restrictions, has a profound impact on the statutory reporting timelines. The financial audit report delay, defined as the duration between the mandatory date of audited financial statement publication and the actual issuance of the annual report (Khaksar et al., 2022), becomes exacerbated in the backdrop of the pandemic. The multifaceted reasons behind financial report delays encompass the size and profitability of the business, accuracy of financial data, internal controls, and, notably, epidemics (Fatmawati & Rohimah, 2022; Johnson, 1996). The unexpected nature of the COVID-19 pandemic amplifies these challenges, making it arduous for businesses to generate financial statements and auditors to conduct audits. The pandemic introduces complexities, making it harder for businesses to compile financial statements (Tibiletti et al., 2021). Its ripple effect across various sectors, from hospitality to finance (Aharon et al., 2021), amplifies uncertainties and delays. Reduced service delivery and layoffs, resulting from the pandemic, further impede financial report creation due to personnel infections, communication challenges, inventory counting difficulties, and technological obstacles. Intercommunication hurdles triggered by the pandemic and related restrictions, compounded by the shift to remote work, impede physical inventory counts and affect audit procedures. Hence, building upon the interplay elucidated by agency theory and the challenges posed by the COVID-19 4 A. OBENG AMANFO OFORI ETAL. pandemic, the study hypothesizes a positive relationship between COVID-19 infection and financial reports delay. 3. Research methodology This subsection provides information on the methodological approach adopted in the study. The specific areas include sample selection, variable definitions and measurement, etc. 3.1. Sample selection As of the end of 2020, the study’s target sample included all corporate organizations in Ghana (both listed and unlisted). Given the study’s aim, we employed the purposive sampling technique (Guarte & Barrios, 2006). The data spans the years 2018–2020 and includes up to 300 observations. The study’s data was gathered from two main sources. First, the annual financial statements of 30 Ghana stock exchange-listed companies were gathered. Second, the study data is gathered from the annual financial reports of 70 unlisted enterprises. The companies are from 10 sectors. These sectors are Agriculture, Health and Beauty, Food and Beverages, Retail, Investment and Education, Manufacturing, Mining, Oil and Gas, Print and ICT, and Telecommunication. 3.2. Dependent variable Financial report delay is the dependent variable in this chapter. Reports delays are occasioned by firms’ reports being published matching the current publishing date with the average dates in previous years and finding the difference in days as employed by Lukason and Camacho-Miñano (2019). In Ghana, firms are mandated to publish their report at least 90 days before the closure of their accounting year (Appiah-Konadu et al., 2022). As such, delay days are calculated as the published financial reports later than 90 days (3 months) after the close of the financial year. 3.3. Independent variable COVID-19 infection is the study’s key independent or explanatory variable. A dummy variable is formed using the number of infected persons in each region. A good design instrument was utilized in collecting data on firms that were double-checked with the number of infections data as ascertained from the Ghana Health Service for each region. Therefore, this variable is estimated as a dummy variable where ‘1’ is indicated if COVID-19 infects a person of each region within a year, and ‘0’ if otherwise. 3.4. Control variables Numerous control variables were used in the research on the impact of COVID-19 infection on firm financial report delays based on reviews of the existing literature on the subject. Even though they are not the subject of this study, these control variables were used since they have been shown in the literature to have a possible influence on the response variable. The control variables used are firm growth, firm size, BIG4, return on assets, board size, firm age, board independence, and leverage. These are adapted from the works of (Jaggi & Tsui, 1999; Leventis & Weetman, 2004; Owusu-Ansah, 2000; Sengupta, 2004) and have all been identified as predicting financial report timeliness (Musah et al., 2022). 3.5. Empirical strategy and model The study emulates (Afenya etal., 2022; Benedict etal., 2021) and used a multivariate standard panel-data technique regression with multiple fixed effect settings to compensate for various business and industry-level heterogeneity factors that could potentially alter the empirical relationship between the major variables of interest (Lawal & Shinozawa, 2022). The baseline model specification is written as follows: COGENT BUSINESS & MANAGEMENT 5 (1) Where DELAY_DAYS is the Published financial report later than 3 months after the close of the financial year. COVID_INF is a dummy variable where 1 represents confirmed COVID-19 infection in each region in a year and 0 if otherwise. GROWTH is the natural log of change in annual revenue. AGE is the number of years a company has been operating. BIG4 is a dummy variable ‘1’ if the firm is audited by Big4, and ‘0’ if otherwise. ROA is the ratio of net income to total assets. LEV is the ratio of total debt to total assets. Board independence is the number of board members who are independent from the firm executives. The number of board directors is BRDSIZE. FRM_SIZE is the size of the firm, estimated as the Log of Total Assets. 4. Results and discussion 4.1. Summary statistics The study investigated the important patterns in the variables (mean, standard deviation, maximum and minimum values, and the number of observations) using summary statistics, which provides a clear picture of the sample’s characteristics. The descriptive data for COVID-19 infections, financial report delays days, and a set of control variables suggested to influence financial report delay in the theoretical and empirical literature are provided in Table 1. The study employed a multivariate conventional panel-data approach regression with several fixed effect settings to account for the company and industry-level heterogeneity factors that could potentially influence the empirical relationship between the primary variables of interest. Additionally, the investigation discovers a large difference in the dependent variable’s values; financial reports delays days from their mean value. The standard deviation of 14.85 indicates that there is considerable variation around the mean of 41.475. Financial report delay days have a minimum and maximum value of 0 and 83, respectively. These are the minimum and maximum values for Fanmilk Ltd and Unilever Ltd. This indicates that Ghana’s average audited financial report is longer than the 90-day reporting period (Owusu-Sekyere & Kotey, 2019). The control variables include growth, firm age, Big4, firm size, leverage, return on assets, board size, and board independent. The study discovers a considerable range in firm size values relative to their mean value. The standard deviation of 2.434 indicates that there is considerable variation around the mean of 17.983. The mean exceeds the standard deviation by seven times. Firm size ranges between 12.586 and 23.187. The study found a standard deviation of 1.218 and a mean value of 0.765 for firm leverage. This association indicates that the values are substantially spread around their mean, resulting in a large standard deviation. The company leverage has a minimum and maximum value of 0.021 and 21.126, respectively. Table 1. Descriptive statistics. Variable obs Mean Median std. dev Min Max DeLaY_DaYs 300 41.475 40.112 14.85 0.000 83.00 CoViD_inF 300 0.271 0.000 0.114 0.000 1.000 FRM_siZe 300 17.983 22.354 2.434 12.586 23.187 Roa 300 0.09 0.044 0.408 −5.650 0.825 LeV 300 0.765 0.628 1.218 0.021 21.126 BRDsiZe 300 8.03 9.251 1.813 4.000 16.000 BRD_inD 300 0.731 0.307 0.145 0.291 0.910 gRoWtH 300 0.256 0.114 0.461 −0.847 5.754 Big4 300 0.835 1.000 0.372 0.000 1.000 age 300 25.938 30.00 18.763 1.000 58.00 DeLaY_DaYs is the Published financial report later than 3 months after the close of the financial year. CoViD_inF is a dummy variable where 1 represent confirm CoViD-19 infection in a region in a year and 0 if otherwise. gRoWtH is the natural log of change in annual revenue. age is the number of years a Company has been in operation. Big4 is a dummy variable where ‘1’ if the firm is audited by Big4, ‘0’ if otherwise. Roa is the net income /total asset. Leverage is the total Debt to total assets. BRDsiZe is the number of board directors. FRM_siZe is the size of the firm estimated as the Log of total assets. BRD_inD is the percentage of non-executive board members to total board. 6 A. OBENG AMANFO OFORI ETAL. Additionally, the ROA observations exhibit a high degree of dispersion from their mean. The mean and standard deviation of ROA are respectively 0.09 and 0.408. The ROA has a range of values between −5.650 and 0.825. Additionally, the study discovers a large range in the values of company growth relative to their mean value. The standard deviation of 0.461 indicates that there is considerable variation around the mean of 0.256. Firm growth has a minimum and maximum value of −0.847 and 5.754, respectively. The study found a standard deviation of 18.763 and a mean value of 25.938 for firm age. This association indicates that the values are substantially spread around their mean, resulting in a large standard deviation. Firm age has a minimum and maximum value of 1 and 58, respectively. Furthermore, the observations for Big4 demonstrate a high degree of dispersion from their mean. Big4’s mean and standard deviation are 0.835 and 0.372, respectively. The mean implies that 84 percent of the enterprises under consideration were audited in Ghana during the study period by one of the Big4 audit firms. Big4 has a maximum and a minimum value of 0 and 1, respectively. The board size (BRDSIZE) observations demonstrate a high degree of dispersion from their mean. Board size (BRDSIZE) has a mean of 8.03 and a standard deviation of 1.813. The board size (BRDSIZE) has a minimum and maximum value of four and sixteen, respectively. Individual board independence observations (BRD_IND) also demonstrate a high degree of dispersion. Board Independence (BRD_ IND) has a mean and standard deviation of 0.731 and 0.145, respectively. This means that, on average, 73.1% members on the board are independent from the firm executive members. Board Independence (BRD_ IND) has a minimum and maximum value of 0.291 and 0.910, respectively. 4.2. Regression results of COVID-19 infection and financial reports delay Although the regression findings in Table 2 include control variables, model 1 column 1 has no control variables, but model 2 column 2 includes both firm and year fixed effects as well as control variables. Table 2. Regression results of CoViD-19 and financial reports delay. DeLaY_DaYs Model 1 Model 2 CoViD_inF 0.530*** 0.391*** (5.78) (8.22) FRM_siZe 0.020*** (5.01) BRDsiZe −0.012** (−2.01) age −0.006 (−0.75) gRoWtH 0.131*** (7.28) LeV 0.028** (2.40) BRD_inD −0.004** (−2.10) Big4 −0.555** (−2.63) Roa −0.006 (−0.46) Constant 0.140** 0.172** (2.14) (2.53) obs. 300 300 R-squared 0.383 0.501 Year Fe no Yes Firm Fe no Yes *, **, and ***indicate significance at the 10%, 5%, and 1% levels, respectively. t-statistics in parenthesis. DeLaY_DaYs is the Published financial report later than 3 months after the close of the financial year. CoViD_inF is an indicator variable where 1 represents confirmed CoViD-19 infection in a region in a year and 0 if otherwise. gRoWtH is the natural log of change in annual revenue, age is the number of years a Company has been in operation. Big4 is a dummy variable ‘1’ if the firm is audited by Big4, ‘0’ if otherwise. Roa is the net income/total asset. LeV is the total Debt to total assets. BRDsiZe is the number of board directors. FRM_siZe is the size of the firm estimated as the Log of total assets. BRD_inD is the percentage of non-executive board members to total board. COGENT BUSINESS & MANAGEMENT 7 Robust error was used to account for any concerns about heteroscedasticity and autocorrelation. The regression findings indicate that when fixed factors are included in model 2, the R-squared value improves dramatically (Nyantakyi et al., 2023). This conclusion shows that some unobserved time-invariant firm-level characteristics have a significant effect on the relationship and are hence necessary to control for. It can be seen from the outcomes in Table 2 that both models show the impact of COVID-19 on reporting delay days in the same direction. COVID-19 infection has a positive significant impact on firms’ financial reporting delay days which suggests that COVID-19 increases the firm’s financial reporting delay days. Conferring to model 2, a unit increase in COVID-19 will result in a 0.391 unit increase in firms’ financial reporting delay days. The results support hypothesis 1, which states that COVID-19 infection is positively correlated with financial reporting delay. By implication, if the company has a higher rate of COVID-19 infection, it will also have more reporting delay days. This aligns with the findings of the study conducted by Lawal and Shinozawa in 2022, demonstrating that COVID-19 induced operational complexities, and subsequent earnings news elucidates the delays in financial reporting. The study of Bajary etal. (2023) also give credence to our findings. The study using internal audit reports reveals auditors take took longer than expected duration of time to complete their task during the COVID-19 era. Inconsistent with our study findings is the research undertaken by Harymawan and Putri (2023) which states what firm that has good corporate governance in place will have no COVID-19 era reporting lag. Additionally, the data indicate that firm size has a positive effect on financial reporting delay at the 1% level of significance. This indicates that reporting delays will increase if the organization grows in size. This is consistent with the study of Harjoto and Laksmana (2022). In terms of leverage, organizations that are highly leveraged are likely to experience a longer reporting delay (Aksoy et al., 2021). This is because high-leverage firms have a greater tendency to manipulate their financial statements to appear trustworthy and earn the trust of creditors to get larger loans. Similarly, the results indicate that enterprises experiencing rapid expansion have a higher rate of reporting delay, which is statistically significant. Firms reporting days tend to reduce as return on asset grows, while the effect is not statistically significant. When board size and independence are increased, there is a strong probability that a company’s reporting delay days will decrease (Aksoy et al., 2021). Thus, at the 5% level of significance, a unit increase in the size and independence of the firm’s board results in a 0.014 and 0.006 decrease in reporting days, respectively. Additionally, it was discovered that firm age has a detrimental effect on firms’ reporting delays. Finally, BIG4 was found to have a substantial negative effect on firms’ reported delay days in the study sample. Consistent with our study findings on the BIG4 is the outcome of the works of Chen etal. (2022). 4.3. Robustness test To check the robustness and sensitivity of the results obtained from the baseline regression of COVID-19 infection on reporting delay days, an alternative measure of COVID-19 was used. Unlike the baseline estimation where COVID-19 infection was treated as an indicator/dummy variable of ‘1’ and ‘0’. The confirmed total number of COVID-19 infection cases recorded in each region of Ghana in a year was utilized. This alternate measure was deployed to check whether the results were sensitive to the precise definition of the key variable used in the study. As such, it is projected that if a company has a higher rate of COVID-19 infection, it will also have high reporting delay days. The results of the robustness test are shown in Table 3. The results found from the robustness test using an alternate measure of COVID-19 infection are consistent with the main outcomes stated, validating that COVID-19 infection indeed upsurges the financial reports delay days because COVID-19 infection affects all lines of accounting reporting (Velayutham et al., 2021), especially accounting personnel (Dyczkowska, 2021) which in turn affects reporting timelines and cause a massive delay in reporting of financials by firms. The baseline regression result and the robustness test result both show that there is a positive and significant relationship between COVID-19 infection and firm financial reports delay. However, comparably to the baseline model results, the robustness test results of total COVID-19 infection in each region in a year have a bigger coefficient. This mirrors exactly the expectation that as the number of COVID-19 infections increases, the impact of COVID-19 infection on firm reports days delay increases further accordingly. The consistency of the coefficient signs and the