Ändra sökning
RefereraExporteraLänk till posten
Permanent länk

Direktlänk
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annat format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annat språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf
The Effect of Quarterly Reporting on Companies Financial Performance: A Survey Study on Five Nordic Stock Markets
Stockholms universitet, Samhällsvetenskapliga fakulteten, Företagsekonomiska institutionen.ORCID-id: 0000-0003-0381-9305
Stockholms universitet, Samhällsvetenskapliga fakulteten, Företagsekonomiska institutionen.
2018 (Engelska)Konferensbidrag, Muntlig presentation med publicerat abstract (Övrigt vetenskapligt)
Abstract [en]

Early version. May not be quoted.

Extended Abstract: In this paper, we study what effect the quarterly reporting has on the reporting company’s financial performance. This question is of current interest in the light of the European Commission 2013 amending its Transparency Directive, where the Commission abolishes the requirement for quarterly reports by publicly traded companies. The survey was performed on the five Nordic stock markets where 157 Chief Financial Officers (CFOs) of listed companies out of 711 responded (response rate of 22 percent). This study is based on the results of the questionnaire sent out to the CFOs of all companies listed on the OMX Nordic Stock Exchange in December 2007. In May 2008, a questionnaire was also sent out to the CFOs of companies listed on the Oslo Stock Exchange. The OMX Nasdaq questionnaire was sent as a letter addressed to a named CFO, where the CFO received a cover letter from the CEO Jukka Ruuska of OMX.

The questionnaire included six pages of questions for the CFOs. In terms of quarterly reporting, the respondents were asked to respond to six questions. Three were yes or no questions and three were specific questions concerning quarterly reporting where the CFOs were asked to give her/his perception of the use of the quarterly reporting on a scale from 1 (strongly disagree) to 5 (strongly agree).

Respondents were asked to indicate (yes or no) whether the company’s performance was affected by the quarterly reporting. The results show that 83 percent of the Icelandic CFOs answered that the quarterly reports affect company performance, while the corresponding figure was 79 percent for Norway, 67 percent for Finland, 44 percent for Sweden, and 41 percent for Danish companies. The main perceived effect the quarterly reporting has on company’s performance is that it creates short-term pressure (3.77 out of 5). The main positive opinion of the quarterly reports is that they give the company a tool to communication with the capital market (4.2 out of 5), but also that the reports make the company focus on cash flow (3.0 out of 5). The CFOs indicate that the quarterly reports require too much effort compared to benefits realized (2.95 out of 5). Furthermore, the responding CFOs indicate that quarterly reporting makes the company consider timeliness of acquisitions, divestments, and investments (2.91 out of 5), obscures the company’s operational goals (2.73), and makes the company emphasize incoming orders (2.64).

The results indicate that more than half of the companies have their quarterly and semi-annual reports audited by their external auditors. Almost 60 percent of these companies also say that the reports affect the way the company performs.

We performed a t-test to reveal if there is a difference between the companies where the CFO believes that quarterly reporting affects the company’s performance and the CFOs that do not believe that quarterly reporting affects the company’s performance. Here we find a significant difference between CFOs that believe that quarterly reporting affects company performance in that these companies have higher volatility, lower current ratio and that the CFOs perceive higher general short-term pressure.

Further, we performed multiple regressions to test whether perceiving an effect from quarterly reporting also has an effect on a CFO’s ability to accurately forecast future sales. The companies’ performance is measured as forecast accuracy (i.e. the difference between forecasted turnover growth for five years and the actual growth). Here we found that quarterly reporting has a significant negative effect on forecast accuracy.

Our study contributes to the current literature in several ways. First, we have a wide set of explanatory variables to explain cross sectional differences, including data from all Nordic countries, which enables us to determine if differences are driven by company heterogeneity. Second, the responses were matched with background information regarding firm- and CFO specific data, financials, ownership type etc. This allows us to examine whether the assumptions behind the theories are valid.

Ort, förlag, år, upplaga, sidor
2018.
Nyckelord [en]
Quarterly reports, chief financial officer, information needs, corporate strategy, financial risk
Nationell ämneskategori
Företagsekonomi
Identifikatorer
URN: urn:nbn:se:su:diva-162374OAI: oai:DiVA.org:su-162374DiVA, id: diva2:1266130
Konferens
Nordic Accounting Conference, Copenhagen, Denmark, November 15-16, 2018
Tillgänglig från: 2018-11-27 Skapad: 2018-11-27 Senast uppdaterad: 2018-12-17Bibliografiskt granskad

Open Access i DiVA

Fulltext saknas i DiVA

Sök vidare i DiVA

Av författaren/redaktören
Weinberg-Krakowski, SusanneBrunzell, Tor
Av organisationen
Företagsekonomiska institutionen
Företagsekonomi

Sök vidare utanför DiVA

GoogleGoogle Scholar

urn-nbn

Altmetricpoäng

urn-nbn
Totalt: 12 träffar
RefereraExporteraLänk till posten
Permanent länk

Direktlänk
Referera
Referensformat
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Annat format
Fler format
Språk
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Annat språk
Fler språk
Utmatningsformat
  • html
  • text
  • asciidoc
  • rtf