报告及时性和财务信息质量外文献英文与翻译Word文档格式.docx

报告及时性和财务信息质量外文献英文与翻译Word文档格式.docx

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Thisstudyisdesignedtoinvestigatetheeffectsofsector,reportingtype,andincomeonfirms’timelyannualfinancialreportingpracticeslistedonIstanbulStockExchange（ISE）.Regressionmodelisutilizedtoexaminetheeffectsofsector（financialfirms）,financialstatementtype（consolidated-non-consolidatedfirms）,andincome（positive-negativeincome）fortheyearsfrom2005to2008.Theresultsrevealthatsector,financialstatementtypeandincomehavesignificantimpactontimelyreportingfinancialstatementsofselectedfirms.Thecoefficientestimatesforsector,financialstatementtype,andincomearestatisticallysignificant.Effectsofsectorandfinancialstatementtypeonleadtimearepositivewhileincome’sisnegative.Basedontheresults,nonfinancialfirmspublishtheirfinancialstatementslaterthanothers.Similarly,consolidatedfirmsreporttheirfinancialstatementslaterthannon-consolidatedfirms.Finally,firmsthatreportpositiveincomereleasefinancialstatementsearlierthanothers.

Keywords:

Timeliness,ReportingFinancialStatements,QualityofFinancialInformation,LeadTime,TimelyReporting

JELClassificationCodes:

1.Introduction

Inthisstudy,weinvestigatetheeffectsofsector（financial-non-financialfirms）,financialstatementtype（consolidated-non-consolidatedfinancialstatements）,andincome（positive-negativeincome）ontimelyreportingpracticesofcompanieslistedonIstanbulStockExchange（ISE–_stanbulMenkulKıymetlerBorsası,IMKB）.Thesectorisdefinedasfinancialfirmsandnon-financialfirmsthatarelistedonISE.Financialstatementtypetermisusedforfirmsthatreporttheirfinancialstatementasconsolidatedandnon-consolidated.Finally,incomeisconsideredasfirmsthatreportpositiveincomeandnegativeincome.Theresultsofouranalysisindicatethatthosevariableshavesignificantimpactsontimelinesoffinancialstatements.

Financialstatementsandmandatoryfinancialreportingareprominentsourcesofinformationforfinancialstatementusersindecisionmaking.Financialstatementsmusthavecertainattributestobeuseful:

understandable,reliable,relevant,andcomparable.Qualityofdatathatfinancialstatementsprovideisusuallycheckedinaccordancewiththoseattributesofstatements.

High-qualityinformationisessentialtotheproperfunctioningofequitymarkets,financialmarkets,andfinancialdecisions（Shaw,2003）.Inordertobefunctional,financialinformationgatheredoutoffinancialstatementsmustbeusefultoitsusers.

Theusefulnessofaccountinginformationtofinancialstatementusersisanimportantcriterionofqualityofearnings.Financialdatathatarenotprovidingusefulinformationtousersarenotvaluable.Asamatteroffact,TheFinancialAccountingStandardsBoard（FASB）outlinesthecomponentsofqualityinformation:

predictivevalue,feedbackvalue,timeliness,verifiability,neutrality,andrepresentationalfaithfulness（VeluryandJenkins,2006）.

Timelinessisoneofthemostimportantcomponentsofrelevancy.Bothtimelinessandrelevanceareimportantfeaturesofusefulinformation.Therefore,financialstatementsshouldbepublishedontimetobeusefultoitsusersintheirdecisionmaking.

Theconceptoftimelinessinfinancialreportinghastwodimensions:

thefrequencyoffinancialreportingandthelagbetweentheendofthereportingperiodandthedatethefinancialstatementsareissued（Davies,1980）.

Timelycorporatefinancialreportingisanimportantqualitativeattributeandanecessarycomponentoffinancialaccounting.Financialinformationneedstobeavailabletoitsusersasrapidlyaspossibletomakecorporatefinancialstatementinformationrelevantdecisionmakingprocess.

Timelyreportingonfinancialstatementsisnecessaryforhealthyfinancialmarkets.Timelyfinancialreportinghelpsinefficientandtimelyallocationofresourcesbyreducingdisseminationofasymmetricinformation,byimprovingpricingofsecurities,andbymitigatinginsidertrading,leaksandrumorsinthemarket（Kamran,2003）.

Manystudieshavediscussedvariousaspectsofcorporategovernance.Intheareaoftimelinessoffinancialreporting,forexample,theAccountingPrinciplesBoard（1970）recognizedthegeneralprincipleseveraldecadesago.TheFinancialAccountingStandardsBoard（1980）recognizedtheimportanceoftimelinessinoneofitsConceptsStatements（McGee,2009,）.

Timelinessisanecessarycomponentofrelevantfinancialinformationthatisreceivingincreasedattentionbyaccountingregulatorsandlistingauthoritiesworldwide.Forexample,intheUnitedStates（U.S.）theSecuritiesandExchangeCommission（SEC）,NewYorkStockExchange（NYSE）,andNASDAQhaveissuedrequirementsandrecommendationsregardingthetimelydisseminationoffinancialinformation（AbdelsalamandStreet,2007,）.

TimelinessoffinancialstatementsisbeingdiscussedintheOECDPrinciplesofCorporateGovernance1.Discloserandtransparencyareexplainedasfollows:

“Thecorporategovernanceframeworkshouldensurethattimelyandaccuratedisclosureismadeonallmaterialmattersregardingthecorporation,includingthefinancialsituation,performance,ownership,andgovernanceofthecompany.Disclosureshouldinclude,butnotbelimitedto,materialinformationon:

Thefinancialandoperatingresultsofthecompany.Informationshouldbepreparedanddisclosedinaccordancewithhighqualitystandardsofaccountingandfinancialandnon-financialdisclosure…”（OECD,2004,p.22）.

Timelyreportingonfinancialstatementsisaffectedbymanyfactors.Theregulations,accountingstandards,andsectorandfirm-specificsaresomeofthose.Whiletheremaybemanyfactors,company-specificandaudit-relatedoneshavebeenexaminedinpriorstudiesasbeingparticularlyimportant.Company-specificfactorsarethosethatenablemanagementofafirmeithertoproducemoretimelyfinancialstatementsortoreducecostsofdelayinginreporting.Suchfactorsincludecompanysize,profitability,gearing,financialcondition,industrytypeandownershipstructure（AnsahandLeventis,2006）.Inthisstudy,weexploretheeffectsofsector,financialstatementtype,andincomeontimelyreporting.

1.1.TheRegulatoryFrameworkforTimelyReportinginTurkey

Forlistedcompaniestwolegalsourcesgoverntimelyreporting:

TurkishCommercialCodeandLawofCapitalMarket.Inadditiontothosesources,TurkishAccountingStandardsBoardispublishingaccountingstandardsincludingtimelinessinfinancialreporting.

TheTurkishCommercialCoderequiresannualreportstobepreparedatleast15daysbeforethedateoftheannualgeneralmeeting.Inaddition,CapitalMarketBoard（CMB）ofTurkeypublishedseveralcommuniqué

srelatedtofinancialreportingprocessbetween1989and2003.In2003,theBoardissuedabroadsetoffinancialreportingstandardsthataretranslationofInternationalAccountingStandards（IAS）andInternationalFinancialReportingStandards（IFRS）.Currently,Turkish

AccountingStandardsBoard（TASB）istheonlyorganizationthatpublishesaccountingstandards.Accordingtoregulationsthatenactedin2003,companiesthatarelistedonthestockexchangemustpublishtheirauditedannualfinancialstatementsbythe10thweekaftertheirfinancialyear-end.However,consolidatedfinancialstatementsmustbepublishedwithin14weeksofthefinancialyearend（Tü

rel,2010）.

2.ReviewoftheLiterature

Anumberofstudieshavediscussedtheaspectsandcomponentsoftimelinessinfinancialreporting.Actually,mostofthosestudiesexaminewhateffectstimelyreportingoffinancialstatements.Theliteraturecontainsstudiesthatarediscussinginternationaldifferencesontimelyreportingoffinancialstatementsaswell.

Manyworksstatemixedconclusionsregardingtherelationshipoftimelinessofreportingandthequalityoftheinformationbeingreported.Somestudiesshowthatgoodnewsisreportedbeforebadnews,whereasotherstudiesshowthatbadnewsisreportedbeforegoodnews.Someresearchersfoundthatmanycompaniesarenotwillingtoreportbadnewsandbecauseofthatcompaniestakemoretimetocalculatethenumbersorapplycreativeaccountingtechniqueswhentheyneedtoreportbadnews.Ontheotherhand,somestudiesfoundthatbadnewsarereportedbeforegoodnewsbecausethemarketwouldnotfocusenoughongoodnews（McGee,2009）.

Basu（1997）statesthatreportingbadnewssoonercouldbejustbecauseofconservatismandreportedearningsrespondmorecompletelyorquicklytobadnewsthangoodnews.However,sometimesbecauseoflessincentiveintaxsystem,conservatismisnotanimportantvariableinreportingbadnewsorgoodnewssooner（JindrichovskaandMcleay,2005）.

Whenfinancialstatementsarereleasedearlierthanexpected,theytendtohavelargerpriceeffectsthanwhentheyarereleasedontimeorlaterthanexpected.Further,unexpectedlyearlyreportsarecharacterizedbygoodnews,whereasunexpectedlylatereportstendtobearbadnews（Chambers&

Penman,1984）.KrossandSchroeder（1984）concludethatabnormalreturnsofcompaniesthatareannouncedearly（late）weresignificantlyhigher（lower）thanthereturnsoffirmsthatareannouncedlate（early）.Andtheirresultsareconsistentwithpreviousstudies.

Therelationshipbetweencompanysizeandtimelinessoffinancialreportsisanotheraspectbeingdiscussedbyresearchers.Aroly（1989）statethatlargefirmsreportearningsrelativelyearly,buttheassociatedmarketreactiontendstobesmallduetothesizeeffect.Ontheotherhand,smallsizefirmsreleaselater,buttheirassociatedmarketreactiontendstobehighduetothe