Management Disclosure and Timeliness of Earnings Announcement: An Empirical Study

44 Pages Posted: 15 Aug 2009

See all articles by Xiongyuan Wang

Xiongyuan Wang

Zhongnan University of Economics and Law

Jun Gu

Department of Accounting, School of Economics, Shenzhen University; Department of Accounting and Finance, Lancaster University Management School

Date Written: August 13, 2009

Abstract

We investigate the influence of management disclosure to the timeliness of earnings announcement based on the Scheduled Disclosure Policy in China as well as the requirements on Earnings Predict and Express. Our finding suggests that the traditional timing patterns still remain in China market, but differs from most other countries that the timing patterns follow the random walk process, the timing pattern in China is based on the scheduled disclosure date. In addition, managerial disclosure can significantly affect the timing patterns. Our evidence shows that the releasing of Earnings Predict can significantly enlarge the reporting lags of the annual report; but find little evidence on the influence from Earnings Express. In addition, we find evidence that the timing patterns of annual and first quarter report next years are related due to their closing on time. Further study shows that this relationship can sometimes challenge the traditional timing patterns. To optimize the disclosure profit, managers can sometimes sacrifice their signals as good news that should be announced earlier rationally. Management disclosure, as key determinants of the timeliness of annual reports, shows significant influence on this relationship as well.

Keywords: Scheduled Disclosure Policy, managerial disclosure, timeliness, Earnings Predict and Express, timing patterns

Suggested Citation

Wang, Xiongyuan and Gu, Jun, Management Disclosure and Timeliness of Earnings Announcement: An Empirical Study (August 13, 2009). Available at SSRN: https://ssrn.com/abstract=1451236 or http://dx.doi.org/10.2139/ssrn.1451236

Xiongyuan Wang

Zhongnan University of Economics and Law ( email )

No.143, Wuluo Road
Wuhan, Hubei 430073
China

Jun Gu (Contact Author)

Department of Accounting, School of Economics, Shenzhen University ( email )

No.3688, Nanshan Revenue
Nanshan District
Shenzhen, Guangdong 518055
China
+8675526536002 (Phone)

Department of Accounting and Finance, Lancaster University Management School ( email )

The Management School
Lancaster LA1 4YX
United Kingdom
+44 (0) 1524 593547 (Phone)

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