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14-Week Quarters

50 Pages Posted: 16 Jan 2009 Last revised: 9 Jan 2011

Rick Johnston

University of Alabama at Birmingham - Department of Accounting and Information Systems

Andrew J. Leone

University of Miami

Sundaresh Ramnath

University of Miami - Department of Accounting

Ya-Wen Yang

Wake Forest University - Schools of Business

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Date Written: January 5, 2009

Abstract

Many firms define their fiscal quarters as 13-week periods so that each fiscal year contains 52 weeks, which leaves out one or two day(s) a year. To compensate, one extra week is added every fifth or sixth year and, consequently, one quarter therein comprises 14 weeks. We find evidence of predictable forecast errors and stock returns in 14-week quarters, suggesting that analysts and investors do not, on average, adjust their expectations for the extra week. The ease with which 14-week quarters can be predicted, and expectations adjusted, suggests a surprising lack of effort on the part of analysts and investors.

Keywords: Market Efficiency, Analyst

JEL Classification: G14, G24, G29, M41

Suggested Citation

Johnston, Rick and Leone, Andrew J. and Ramnath, Sundaresh and Yang, Ya-Wen, 14-Week Quarters (January 5, 2009). Available at SSRN: https://ssrn.com/abstract=1328026 or http://dx.doi.org/10.2139/ssrn.1328026

Rick M. Johnston

University of Alabama at Birmingham - Department of Accounting and Information Systems ( email )

Birmingham, AL 35294
United States

Andrew J. Leone

University of Miami ( email )

School of Business
Coral Gables, FL 33146
United States
305-284-3101 (Phone)

HOME PAGE: http://sbaleone.bus.miami.edu

Sundaresh Ramnath (Contact Author)

University of Miami - Department of Accounting ( email )

Coral Gables, FL 33146-6531
United States
305-284-6668 (Phone)

Ya-Wen Yang

Wake Forest University - Schools of Business ( email )

P.O. Box 7659
Winston-Salem, NC 27109-7285
United States
336-758-2934 (Phone)

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