Determinants of Early Financial Reporting in Indonesia’s Financial Sector: The Role of RegTech and Institutional Type

M. Daffa Fahada Lubis; Andi Qur'ani Ratu Sabrina Arham Putri

doi:10.30595/jesh.v4i1.471

Authors

M. Daffa Fahada Lubis Politeknik Keuangan Negara STAN
Andi Qur'ani Ratu Sabrina Arham Putri Politeknik Keuangan Negara STAN

DOI:

https://doi.org/10.30595/jesh.v4i1.471

Keywords:

Early Financial Reporting, Compliance Behavior, Financial Sector, Indonesia, Institutional

Abstract

This study examines the drivers of early financial reporting across Indonesia’s financial institutions. It highlights the influence of institutional type and technological adoption. While digital tools like RegTech are often promoted as solutions for timely compliance, our findings reveal that institutional characteristics, particularly being a financing institution, are far more decisive. Entities in the financing sector, not finance sector as a whole, are over 30 times more likely to report early with a probability increase of more than 50 percentage points compared to other sectors. In contrast, factors such as RegTech adoption, firm size, and IT infrastructure do not exhibit significant influence on reporting timeliness. These results suggest that organizational alignment with regulatory expectations and internal governance practices play a more critical role than digital maturity alone. Despite high levels of technology adoption, early reporting behavior remains uneven which shows reinforcing the notion that technology is not a standalone solution. The logistic regression model used in this study demonstrates strong predictive ability which emphasizes the importance of sectoral identity in shaping reporting outcomes. Policymakers are encouraged to move beyond one-size-fits-all digital mandates and instead develop targeted strategies that address the specific institutional contexts of financial entities

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