The Effect of Mandatory Quarterly Reporting on Firm Value

• 成果类型: Article
• 署名作者: Kajueter, Peter; Klassmann, Florian; Nienhaus, Martin
• 署名单位: University of Munster
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52212
• 发表日期: 2019
• 页码: 251-277
• 关键词: regression discontinuity designs; information asymmetry; capital-markets; economic consequences; Disclosure regulation; corporate-ownership; INVESTMENT; earnings; liquidity; frequency

摘要

We exploit a regulatory change in Singapore to analyze the capital market effects of mandatory quarterly reporting. The listing rule implemented in 2003 has required firms with a market capitalization above S$ 75 million-but not firms with a market capitalization below this threshold-to publish quarterly financial statements. Using regression discontinuity analysis for our identification, we provide novel evidence of the causal effects of mandatory quarterly reporting on small firms. We find a 5 percent decrease in firm value, consistent with the notion that mandatory quarterly reporting is perceived as a net burden for small firms. Contrary to popular belief, we cannot find evidence of informational benefits or myopic investment for firms around the threshold. Additional tests suggest positive information spillover effects from large mandatory quarterly reporters to non-quarterly reporting firms.