Financial Reporting Frequency, Information Asymmetry, and the Cost of Equity

By Renhui Fu, Arthur G. Kraft, Huai Zhang. 2012

278 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/6a2dbe34a31acfd4f8a5841719656a4727a385f3

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Citations in the corpus

The effect of financial reporting quality on corporate dividend policy (2017, unknown): “All continuous variables are winsorized at 1% and 99% Consistent with prior research (e.g., Butler et al. 2007; Fu et al. 2012), we identify our test firms as those that increased reporting frequency because of the SEC mandate—firms that switched from annual to semiannual reporting after 1954 or…”
Frequent Financial Reporting and Managerial Myopia (2018, background): “Prior research suggests that increased transparency is beneficial through improved liquidity and reduced cost of capital (e.g., Leuz and Verrecchia, 2000; Fu et al., 2012).”
The Real Effects of Mandatory Quarterly Reporting (2017, background): “BACKGROUND In the US, quarterly reporting has been mandatory for listed firms for decades (Fu et al. 2012).”
The effects of financial reporting and disclosure on corporate investment: A review (2019, background): “On the one hand, Fu et al. (2012) document that an increase in reporting frequency can be beneficial because it reduces the cost of capital. On the other hand, Kraft et al. (2018) show that increases in reporting frequency can be detrimental to shareholders because it leads managers to reduce invest”
The association between book-tax conformity and earnings management (2014, unknown): “14 and Frank et al. (2009) by examining the association between aggressive financial reporting and tax aggressiveness for a large sample of firms accused of overstating earnings by the SEC (as identified in Accounting and Auditing Enforcement Releases).”