The purpose of this research is to explore the relation between firm characteristics and accounting reporting lag. This research also tests the magnitude of the stock market"s reation at the time of earnings anouncement period.
The research period was...
The purpose of this research is to explore the relation between firm characteristics and accounting reporting lag. This research also tests the magnitude of the stock market"s reation at the time of earnings anouncement period.
The research period was 1988-1996. The empirical results of this study are as follows: 1. Firm size is highly associated with annual earning reporting delay. In Korea, larger firms usually disclose earnings relatively early.
2. Bad news tends to be delayed, though the significance is low.
3. After controlling for firm size, the length of the reporting delay is inversely related to the magnitude of report period price revaluations.
That is, longer delays are associated with smaller market reactions, and this relation holds for the expected portion of the total chronological lag, as well as for the unexpected lag.