Abstract

http://ssrn.com/abstract=2083812
 


 



The Usefulness of Historical Financial Reports


Michael S. Drake


Brigham Young University - Marriott School

Darren T. Roulstone


Ohio State University (OSU) - Fisher College of Business

Jacob R. Thornock


University of Washington - Michael G. Foster School of Business

January 2015


Abstract:     
In this study we investigate the usefulness of historical financial reports (10-Ks and 10-Qs) by examining four settings where we expect investors to acquire historical reports in order to obtain qualitative and quantitative information that provides context for information released in the current period. Using a novel dataset that tracks user requests for financial reports stored in the SEC EDGAR database, we find that requests for historic reports are positively associated with financial reporting complexity, accounting discretion, negative earnings shocks (particularly for conservative firms), and shocks to firm value (particularly negative shocks). Overall, our evidence suggests that historical reports make up an important component of the information mosaic assembled by investors.

Number of Pages in PDF File: 51

Keywords: EDGAR, information acquisition, usefulness, financial reports

JEL Classification: G12, G14, M41


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Date posted: June 13, 2012 ; Last revised: February 6, 2015

Suggested Citation

Drake, Michael S. and Roulstone, Darren T. and Thornock, Jacob R., The Usefulness of Historical Financial Reports (January 2015). Available at SSRN: http://ssrn.com/abstract=2083812 or http://dx.doi.org/10.2139/ssrn.2083812

Contact Information

Michael S. Drake (Contact Author)
Brigham Young University - Marriott School ( email )
United States
Darren T. Roulstone
Ohio State University (OSU) - Fisher College of Business ( email )
2100 Neil Avenue
Columbus, OH 43210-1144
United States

Jacob Thornock
University of Washington - Michael G. Foster School of Business ( email )
Box 353200
Seattle, WA 98195-3200
United States
HOME PAGE: http://faculty.washington.edu/thornocj/index.shtml
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