Scholars@Duke

Frequent financial reporting and managerial myopia

Publication ,  Journal Article
Kraft, AG; Vashishtha, R; Venkatachalam, M
Published in: Accounting Review
March 1, 2018
Published version (DOI)

Using the transition of U.S. firms from annual reporting to semi-annual reporting and then to quarterly reporting over the period 1950-1970, we provide evidence on the effects of increased reporting frequency on firms' investment decisions. Estimates from difference-in-differences specifications indicate that increased reporting frequency is associated with an economically large decline in investments. Additional analyses reveal that the decline in investments is most consistent with frequent financial reporting inducing myopic management behavior. Our evidence informs the recent controversial debate about eliminating quarterly reporting for U.S. corporations.

Duke Scholars

Rahul Vashishtha
Author Rahul Vashishtha Fuqua School of Business
Mohan Venkatachalam
Author Mohan Venkatachalam Fuqua School of Business
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Published In

Accounting Review

DOI

10.2308/accr-51838

ISSN

0001-4826

Publication Date

March 1, 2018

Volume

93

Issue

2

Start / End Page

249 / 275

Related Subject Headings

  • Accounting
  • 3502 Banking, finance and investment
  • 3501 Accounting, auditing and accountability
  • 1501 Accounting, Auditing and Accountability
 

Citation

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Kraft, A. G., Vashishtha, R., & Venkatachalam, M. (2018). Frequent financial reporting and managerial myopia. Accounting Review, 93(2), 249–275. https://doi.org/10.2308/accr-51838
Kraft, A. G., R. Vashishtha, and M. Venkatachalam. “Frequent financial reporting and managerial myopia.” Accounting Review 93, no. 2 (March 1, 2018): 249–75. https://doi.org/10.2308/accr-51838.
Kraft AG, Vashishtha R, Venkatachalam M. Frequent financial reporting and managerial myopia. Accounting Review. 2018 Mar 1;93(2):249–75.
Kraft, A. G., et al. “Frequent financial reporting and managerial myopia.” Accounting Review, vol. 93, no. 2, Mar. 2018, pp. 249–75. Scopus, doi:10.2308/accr-51838.
Kraft AG, Vashishtha R, Venkatachalam M. Frequent financial reporting and managerial myopia. Accounting Review. 2018 Mar 1;93(2):249–275.

Published In

Accounting Review

DOI

10.2308/accr-51838

ISSN

0001-4826

Publication Date

March 1, 2018

Volume

93

Issue

2

Start / End Page

249 / 275

Related Subject Headings

  • Accounting
  • 3502 Banking, finance and investment
  • 3501 Accounting, auditing and accountability
  • 1501 Accounting, Auditing and Accountability