Consequences of Interim Reporting: A Literature Review and Future Research Directions

Kajüter P, Lessenich A, Nienhaus M, van Gemmern F


Zusammenfassung
This study provides the first comprehensive literature review on interim reporting based on 112 papers published between 1961 and 2020. The review focuses on both the firm-specific consequences (capital market-based and real effects) and externalities of interim reporting. We analyze three primary interim reporting characteristics: (1) frequency, (2) contents, and (3) assurance. The review allows us to summarize the existing literature, reconcile different findings, identify trends in the literature, and present avenues for future research. We observe that investors perceive interim reports to be useful. However, no clear evidence exists for strong capital market-based benefits of higher reporting frequency, such as increases in liquidity. Higher reporting frequency seems to imply stricter monitoring, especially in the absence of other effective monitoring mechanisms. Nonetheless, it can also induce myopic decision-making. More comprehensive reports convey more information at the costs of increases in reporting lags and processing time. Surprisingly, the current literature does not find that interim assurance leads to higher interim report quality.

Schlüsselwörter
Interim reporting; Reporting frequency; Interim assurance; Literature review



Publikationstyp
Forschungsartikel (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2022

Fachzeitschrift
European Accounting Review

Band
31

Erste Seite
209

Letzte Seite
239

Sprache
Englisch

ISSN
0963-8180

DOI

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