Financial reporting frequency and external finance: Evidence from a quasi-natural experiment in Japan

2019 ◽  
Author(s):  
Ryosuke Fujitani
Keyword(s):  
Financial Reporting ◽  
Natural Experiment ◽  
External Finance ◽  
Reporting Frequency

Interim Reporting Frequency and the Mispricing of Accruals

2018 ◽  
Vol 32 (3) ◽  
pp. 29-47
Author(s):  
Shou-Min Tsao ◽  
Hsueh-Tien Lu ◽  
Edmund C. Keung
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Data Availability ◽  
Financial Reports ◽  
Regulatory Changes ◽  
Sample Composition ◽  
Reporting Frequency ◽  
Over Time ◽  
Jel Classifications ◽  
Accrual Mispricing

SYNOPSIS This study examines the association between mandatory financial reporting frequency and the accrual anomaly. Based on regulatory changes in reporting frequency requirements in Taiwan, we divide our sample period into three reporting regimes: a semiannual reporting regime from 1982 to 1985, a quarterly reporting regime from 1986 to 1987, and a monthly reporting regime (both quarterly financial reports and monthly revenue disclosure) from 1988 to 1993. We find that although both switches (from the semiannual reporting regime to the quarterly reporting regime and from the quarterly reporting regime to the monthly reporting regime) hasten the dissemination of the information contained in annual accruals into stock prices and reduce annual accrual mispricing, the switch to monthly reporting has a lesser effect. Our results are robust to controlling for risk factors, transaction costs, and potential changes in accrual, cash flow persistence, and sample composition over time. These results imply that more frequent reporting is one possible mechanism to reduce accrual mispricing. JEL Classifications: G14; L51; M41; M48. Data Availability: Data are available from sources identified in the paper.

scholarly journals Financial Reporting Frequency and Managerial Learning from Stock Price

2020 ◽  
Author(s):  
Stephen A. Hillegeist ◽  
Asad Kausar ◽  
Arthur Gerald Kraft ◽  
You-il (Chris) Park
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Reporting Frequency

scholarly journals Financial Reporting Frequency and Corporate Innovation

2020 ◽  
Vol 63 (3) ◽  
pp. 501-530 ◽  
Author(s):  
Renhui Fu ◽  
Arthur Kraft ◽  
Xuan Tian ◽  
Huai Zhang ◽  
Luo Zuo
Keyword(s):  
Financial Reporting ◽  
Corporate Innovation ◽  
Reporting Frequency

Reporting Frequency and Presentation Format: Detecting Real Activities Manipulation

2015 ◽  
Vol 30 (3) ◽  
pp. 63-77 ◽  
Author(s):  
Fengchun Tang ◽  
Christopher Kevin Eller ◽  
Benson Wier
Keyword(s):  
Financial Reporting ◽  
Graphical Representation ◽  
Financial Analysts ◽  
Cognitive Effort ◽  
Financial Statement ◽  
Presentation Format ◽  
Cognitive Fit ◽  
Data Points ◽  
Real Activities Manipulation ◽  
Reporting Frequency

ABSTRACT As management increasingly manages earnings through real activities manipulation (RAM), RAM detection has become an important issue. This study investigates the role of reporting frequency and presentation format in detecting sales-related RAM. Based on the results of an online experiment with 77 experienced financial analysts, we find that more frequent financial reporting significantly improves sales-related RAM detection when financial analysts are aided with graphical displays. The results of our study suggest that more frequent financial reporting has the potential to improve RAM detection by disclosing trends that are suggestive of RAM. Moreover, results indicate that graphical representation reduces the cognitive effort required to process a larger number of data points generated by more frequent reporting and thus provides a better cognitive fit than tabular representation. As a result, the combination of more frequent reporting and graphical support together may assist financial statement users in detecting certain types of RAM.

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