The Timeliness of UK Private Company Financial Reporting: Regulatory and Economic Influences

The British Accounting Review, 48(3), pp. 297-315, 2016

Posted: 27 Jul 2016 Last revised: 29 Jul 2016

See all articles by Mark Clatworthy

Mark Clatworthy

University of Bristol, Department of Accounting and Finance

Michael J. Peel

Cardiff University - Cardiff Business School

Multiple version iconThere are 2 versions of this paper

Date Written: July 26, 2016

Abstract

This paper investigates the extent to which the timeliness of UK private companies’ accounting information reflects regulatory and economic influences by studying the impact of a one month shortening of the statutory regulatory filing deadline. Using the financial reporting lag and propensity to file late as measures of timeliness, we find that although reporting behaviour is largely driven by regulatory deadlines, companies conjectured to be producing accounting information for reporting to outside investors publish their accounts significantly more quickly, and are substantially less likely to file beyond the statutory deadline (late), than their counterparts lacking similar incentives. However, in terms of this reporting lag differential, the change in regulation had a homogeneous impact. We report a significant reduction in the mean and median filing time, but an increase of 46% in the proportion of firms filing late, in the year following the regulatory change. Our results are robust to the employment of a number of different estimation methods, including matching and Huber and median regression.

Keywords: Private Company Financial Reporting, Regulation, Voluntary Audit, Timeliness, Late Filing

JEL Classification: M40, M4

Suggested Citation

Clatworthy, Mark A. and Peel, Michael J., The Timeliness of UK Private Company Financial Reporting: Regulatory and Economic Influences (July 26, 2016). The British Accounting Review, 48(3), pp. 297-315, 2016. Available at SSRN: https://ssrn.com/abstract=2814574

Mark A. Clatworthy

University of Bristol, Department of Accounting and Finance ( email )

School of Economics, Finance and Management
8 Woodland Road
Bristol, BS8 1TN
United Kingdom
+44(0)1173310914 (Phone)

Michael J. Peel (Contact Author)

Cardiff University - Cardiff Business School ( email )

Cardiff
United Kingdom

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