Determinants of the Timeliness of Quarterly Reporting: Evidence from Canadian Firms
23 Pages Posted: 11 Jan 2006
Date Written: January 2006
Abstract
This study examines the determinants of the timeliness of quarterly reporting in Canada. Based on prior research, we hypothesize that interim financial statements are released more promptly by companies with a high transparency of information environment than firms with a low transparency of information environment. We also hypothesize that firms with more agency problems are more likely to delay the disclosure of their interim financial statements than firms with less agency problems. We provide evidence that firms' information environment and agency problems are related to the timeliness of quarterly reporting. More interestingly, we find that firms that do not have their interim financial statements reviewed by their auditors are less timely in releasing their interim financial statements than firms having their interim financial statements reviewed, suggesting that firms may perceive the disclosure of no audit review as a negative signal to market participants and thus intentionally delay that disclosure.
Keywords: quarterly financial statements, interim review engagements
Suggested Citation: Suggested Citation
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