Timeliness of Annual Reports, Management Disclosure and Information Transparency -Evidence From China

29 Pages Posted: 10 Jun 2008 Last revised: 5 Dec 2008

See all articles by Xiongyuan Wang

Xiongyuan Wang

Zhongnan University of Economics and Law

Jun Gu

Department of Accounting and Finance, Lancaster University Management School; Department of Accounting, School of Economics, Shenzhen University

Christy Chen

affiliation not provided to SSRN

Date Written: December 3, 2008

Abstract

This paper examines the determinants, the current signal effect and the long-term one from the timeliness of the annual report with the proxy of the short term signal effect and the information transparency next period respectively with the data from the A Stock Market in China from 2004 to 2006. We find that, management disclosure shows great influence on the timeliness of annual reports. The reporting lags of the first quarter report next year and the information type of annual reports are both owing significantly negative relation to the reporting lags. And the releasing of Earnings Forecast and Earnings Express are both in a significantly positive association with the reporting lags. After controlling the common factors such as auditing opinion, EPS, the timeliness of annual reports is positively related to the information transparency in the coming period, companies that bringing the timing forward indicates a high level of information transparency and a low one of earnings management, and the ones that taking the timing backward suffer from a result in contrary. Thus we conclude different timing selection interprets different signals that the announcements convey. The contribution of this paper to the literature on timeliness is that it detects and proves the determinants of the timing of annual reports and the signals it conveys on the basis of the unique institutional environment in China, which is of great significance on the proof of the consequence of related regulations announced by SEC

Keywords: Management Disclosure, Timeliness, Market Reaction, Earnings Forecast, Earnings Express, First Quarter Report

JEL Classification: M41, M45, M47, G12, G15

Suggested Citation

Wang, Xiongyuan and Gu, Jun and Gu, Jun and Chen, Christy, Timeliness of Annual Reports, Management Disclosure and Information Transparency -Evidence From China (December 3, 2008). Available at SSRN: https://ssrn.com/abstract=1143213 or http://dx.doi.org/10.2139/ssrn.1143213

Xiongyuan Wang (Contact Author)

Zhongnan University of Economics and Law ( email )

No.143, Wuluo Road
Wuhan, Hubei 430073
China

Jun Gu

Department of Accounting, School of Economics, Shenzhen University ( email )

No.3688, Nanshan Revenue
Nanshan District
Shenzhen, Guangdong 518055
China
+8675526536002 (Phone)

Department of Accounting and Finance, Lancaster University Management School ( email )

The Management School
Lancaster LA1 4YX
United Kingdom
+44 (0) 1524 593547 (Phone)

Christy Chen

affiliation not provided to SSRN ( email )

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