The Real Effects of Mandatory Quarterly Reporting

How Does Reporting Frequency Influences the Performance of a Firm? A Theoretical Review and Empirical Evidence.

“…Their results are predominantly solid in high equity market and earnings management scores countries and weak legal implementation. As expected, the effect is also sturdier for companies which aren't as much monitored by analysts, companies in more competitive industries, and companies with investors than are not oriented to the (Ernestberger, Link, & Vogler, 2011). Summing up, Ernstberger, Link and Vogler (2011) find that a higher mandatory reporting frequency can be connected to higher real activities manipulation.…”

“…This can lead to the expense of values as stated in their work. Out of curiosity, Ernstberger, Link and Vogler (2011) give the example of Porsche Firm which was excluded from the German stock market because it refused to report quarterly arguing that it would lead to short-term decision making.…”

“…At the time of the study, from the fifteen members, only eight required quarterly reporting. The remaining required semi-annually reporting (Ernestberger, Link, & Vogler, 2011).…”

“…They define this concept as "deviations from normal operational practices for avoiding earnings surprises and other adverse effects such as, e.g., loss in reputation." (Ernestberger, Link, & Vogler, 2011).…”

“…This new measure is intended to detect if the reporting frequency influences the real activities manipulation (Ernestberger, Link, & Vogler, 2011).…”