TIMING THE NUMBERS: UNDERSTANDING CORPORATE FINANCIAL REPORTING LAG IN FRANCE

Abstract

Financial research has extensively delved into the impact of discretionary management practices, particularly those related to opportunistic accounting choices and disclosure policies. Existing studies have primarily concentrated on the management's release of earnings and sales forecasts, examination of financial statements and footnotes, and the discretionary aspects of accounting choices or conference call presentations (Healy and Palepu, 2001; Verrechia, 2001). However, a notable gap in the literature pertains to the timing decisions made by managers when releasing accounting information. This study addresses the underexplored area of managers' timing decisions concerning the release of accounting information, shedding light on the significance of reporting lag and disclosure timing. Unlike the prevalent focus on intrinsic value in financial figures, this research directs attention towards understanding when managers choose to unveil accounting information. Notably, the limited attention to this topic, particularly within the U.S., raises questions about whether financial markets place less importance on the timing of disclosures. Historically, surveys have primarily centered on the determination of when managers decide to release accounting information. Early investigations by Givoli and Palmon (1982) and Zeghal (1984) analyzed the timeliness of accounting reports, exploring the temporal aspects of information disclosure. However, the U.S. context and its unique financial market dynamics have not received sufficient scrutiny in this regard. This research seeks to bridge this gap by delving into the nuanced timing decisions made by U.S. managers in releasing accounting information. In addition to synthesizing existing literature on the timeliness of accounting reports, this study also draws on the work of Sengupta (2004), who pioneered the examination of the time when firms opt to reveal quarterly accounting earnings. Sengupta's focus on the number of days between the end of the fiscal period and the quarterly earnings announcement dates provides valuable insights into the temporal dimensions of financial reporting. By adopting a comprehensive approach, this research contributes to the existing body of knowledge by not only addressing the broader question of when managers release accounting information but also by providing a nuanced understanding of the temporal dynamics involved. The findings of this study are expected to have implications for financial markets, regulatory bodies, and practitioners, offering insights that can inform decision-making processes related to financial reporting.