Determinants of the Timeliness of Quarterly Reporting: Evidence from Canadian Firms

23 Pages Posted: 11 Jan 2006

See all articles by J. Efrim Boritz

J. Efrim Boritz

University of Waterloo - School of Accounting and Finance

Guoping Liu

Ryerson University - Ted Rogers School of Business Management

Date Written: January 2006

Abstract

This study examines the determinants of the timeliness of quarterly reporting in Canada. Based on prior research, we hypothesize that interim financial statements are released more promptly by companies with a high transparency of information environment than firms with a low transparency of information environment. We also hypothesize that firms with more agency problems are more likely to delay the disclosure of their interim financial statements than firms with less agency problems. We provide evidence that firms' information environment and agency problems are related to the timeliness of quarterly reporting. More interestingly, we find that firms that do not have their interim financial statements reviewed by their auditors are less timely in releasing their interim financial statements than firms having their interim financial statements reviewed, suggesting that firms may perceive the disclosure of no audit review as a negative signal to market participants and thus intentionally delay that disclosure.

Keywords: quarterly financial statements, interim review engagements

Suggested Citation

Boritz, Efrim and Liu, Guoping, Determinants of the Timeliness of Quarterly Reporting: Evidence from Canadian Firms (January 2006). Available at SSRN: https://ssrn.com/abstract=875288 or http://dx.doi.org/10.2139/ssrn.875288

Efrim Boritz (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1 N2L 3G1
Canada
519-888-4567 (Phone)
519-888-7562 (Fax)

Guoping Liu

Ryerson University - Ted Rogers School of Business Management ( email )

350 Victoria Street
Toronto, Ontario M5B 2K3
Canada
(416)9795000 ext. 2453 (Phone)