Determinants of Earnings Announcement Timeliness and of Audit Lag: A Two-Stage Estimation Approach

Posted: 30 Aug 1999

See all articles by Paul André

Paul André

HEC Lausanne

Claude Laurin

HEC Montreal - Department of Accounting Studies

Anis Thabet

Universite du Quebec a Montreal

Date Written: March 1999

Abstract

This study examines the behaviour of firms with respect to their choice of the date when their preliminary earnings are announced; as well, this study attempts to determine the factors that influence the timeliness of earnings announcements. Factors that are assumed to influence the earnings announcement timeliness include the nature of the news, the magnitude of the demand for information, regulation and audit technology. The results of our study suggest that firms are fairly regular and typically announce their earnings within an average seven day period. However, it seems that the nature of their announcement could alter this regularity. Canadian firms tend to delay the announcement of bad news and to announce good news early. As for determining the announcement delay, firm specific variables ? size, cross-listing on more than one stock exchanges, the nature of the firm?s auditor, the fiscal year end, and operating in the financial sector ? all seem to reduce the earnings announcement delay. Two-stage lest squares regressions confirm the robustness of our results.

JEL Classification: M41, M43, M49

Suggested Citation

Andre, Paul and Laurin, Claude and Thabet, Anis, Determinants of Earnings Announcement Timeliness and of Audit Lag: A Two-Stage Estimation Approach (March 1999). Available at SSRN: https://ssrn.com/abstract=172048

Paul Andre

HEC Lausanne ( email )

UNIL-Dorigny
Anthropole
Lausanne, 1015
Switzerland

Claude Laurin (Contact Author)

HEC Montreal - Department of Accounting Studies ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal H3T 2A7, Quebec
Canada
514-340-6536 (Phone)
514-340-5633 (Fax)

Anis Thabet

Universite du Quebec a Montreal

P.O. Box 8888, Downtown Station
Succursale Centre Ville
Montreal, Quebec H3C 3P8
Canada

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