Quotation Bornemann, Tobias, Moosmann, Anna-Lena, Novotny-Farkas, Zoltán. 2021. The Consequences of Abandoning the Quarterly Reporting Mandate in the Prime Market Segment: Evidence from Austria.


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Abstract

This study investigates firms’ reporting choices and ensuing capital market effects in response to the gradual deregulation of quarterly reporting in the prime market segment of the Vienna Stock Exchange (VSE). First, in November 2015, the VSE abandoned the mandate to prepare quarterly reports in compliance with International Accounting Standard (IAS) 34 Interim Financial Reporting. We observe that half of the prime market firms stop IAS 34 compliance until 2018, but do not experience any adverse effects on their stock liquidity. Second, in February 2019, the VSE completely terminated the quarterly reporting mandate. Only a few firms abandon quarterly reporting, but about half of firms reduce the scope (i.e., the content) of quarterly reports to varying degrees. We find that firms that terminate or reduce the scope of quarterly reporting the most, experience a significant decrease in stock liquidity. Taken together, our findings suggest that firms carefully trade off the economic benefits of discretionary presentation format, lower reporting frequency and scope against associated economic costs in the form of reduced liquidity.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title The Consequences of Abandoning the Quarterly Reporting Mandate in the Prime Market Segment: Evidence from Austria
Year 2021
URL http://dx.doi.org/10.2139/ssrn.3881711
JEL G18, K22, M41, M48

Associations

People
Bornemann, Tobias (Details)
Moosmann, Anna-Lena (Former researcher)
Novotny-Farkas, Zoltán (Details)
Organization
International Accounting Group AB (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5300 Economics (Details)
5327 Accounting (Details)
5349 Business taxation (Details)
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