Does Reporting Frequency Affect the Allocation of Investor Attention Among Peer Firms? 

The frequency at which public companies must report financial information to investors has been the subject of intense debate in the European Union, Asia, and more recently the United States. For example, the Securities and Exchange Commission (SEC) is examining the pros and cons of giving U.S. companies the flexibility to report on a semi-annual basis (SEC, 2018). While previous studies have espoused the benefits of more frequent quarterly reporting in reducing information asymmetry and the cost of capital, much of the recent debate has been centered around concerns that quarterly reporting would impose significant preparation costs and encourage short-termism … Read more