The Effect of Payment Delay in Interim Payment Certificate (IPC) and Payment Delay in Invoice, Financial Reporting Transparency; The Mediation Role of Accountability in Infrastructure Project In Timor-Leste

DOI

10.2991/978-94-6239-811-5_44How to use a DOI?

Keywords

Accountability; Financial reporting transparency; Invoice payment delay; IPC payment delay

Abstract

The timely disbursement of payment through Interim Payment Certificates (IPC) and Invoice is critical to keep liquidity consistent stability and supporting smooth successful execution of construction projects. This study assesses how delays in IPC and invoice settlements affect accountability and financial reporting transparency in public infrastructure projects in Timor-Leste and further investigates the indirect role of accountability connection on Agency theory and stakeholder theory. A quantitative causal survey design was employed, with primary data collected from 108 respondents comprising financial personnel from contractors, monitoring consultants, and PMU representatives at the Ministry of Public works of Timor-Leste. Data was evaluated using PLS-SEM statistical approach. The results showed that both IPC and Invoice payment delays have significantly negative effects on accountability, while accountability itself exerts a favorable effect on financial reporting transparency. These findings emphasize the necessity of improving the payment administration system and accountability mechanisms. The mediation analysis indicates that the effect of X1 through M toward Y showsβ -v0.108 p 0.004. and the mediated relationship of X2 through M toward Y demonstrates β - 0.125 (p 0.002).

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Merlinda Amaral da Cruz
AU  - Baldric Siregar
AU  - Miswanto
AU  - Frasto Biyanto
PY  - 2026
DA  - 2026/10/29
TI  - The Effect of Payment Delay in Interim Payment Certificate (IPC) and Payment Delay in Invoice, Financial Reporting Transparency; The Mediation Role of Accountability in Infrastructure Project In Timor-Leste
BT  - Proceedings of the International Conference on Business, Economic, and Social Sustainability (ICOBES 2026)
PB  - Atlantis Press
SP  - 558
EP  - 572
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-811-5_44
DO  - 10.2991/978-94-6239-811-5_44
ID  - Cruz2026
ER  -