13 Pages Posted: 29 Jul 2012
Date Written: July 10, 2012
Fu, Kraft and Zhang (2012) use a hand-collected sample of firms with different interim reporting frequencies from 1951 to 1973 to test whether higher reporting frequency is associated with lower information asymmetry and a lower cost of equity capital. Their results suggest that firms with higher reporting frequency (e.g., firms reporting quarterly as opposed to annually) have lower information asymmetry and a lower cost of equity capital. In this discussion, I expand on FKZ by elaborating on their hypothesis development and research design, and providing suggestions for future research.
Keywords: Interim reporting frequency, information asymmetry, cost of equity
JEL Classification: G14, G18, M41, M45
Suggested Citation: Suggested Citation
Verdi, Rodrigo S., Discussion of 'Financial Reporting Frequency, Information Asymmetry, and the Cost of Equity' (July 10, 2012). Journal of Accounting & Economics (JAE), Forthcoming. Available at SSRN: https://ssrn.com/abstract=2118815