IDEAS home Printed from https://ideas.repec.org/a/bla/popmgt/v32y2023i3p762-779.html
   My bibliography  Save this article

Sooner or later? A study of report timing

Author

Listed:
  • Rahul Menon
  • Lin Nan

Abstract

This study examines the optimal reporting time a regulator should choose for firms to report their information when the firms' effort choices influence the outcome of projects. Our analysis shows that, the regulator's optimal choice of reporting time to maximize overall efficiency is contingent on a trade‐off between motivating a firm's effort to improve the outcome and saving the liquidation value for the creditor to reduce the firm's financing cost. We also find that to induce the firm's effort, the reporting time should be either early enough or late enough—depending on the effectiveness of the effort to turn bad projects into successes. Furthermore, we examine the regulator's optimal choice of reporting time for an economy with heterogenous firms/industries, and we show that the optimal reporting time changes nonmonotonically in the probability of good projects in the economy.

Suggested Citation

  • Rahul Menon & Lin Nan, 2023. "Sooner or later? A study of report timing," Production and Operations Management, Production and Operations Management Society, vol. 32(3), pages 762-779, March.
    • Handle: RePEc:bla:popmgt:v:32:y:2023:i:3:p:762-779
    DOI: 10.1111/poms.13897
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/poms.13897
    Download Restriction: no
    File URL: https://libkey.io/10.1111/poms.13897?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Christian Hofmann & Naomi R. Rothenberg, 2019. "Forecast Accuracy and Consistent Preferences for the Timing of Information Arrival†," Contemporary Accounting Research, John Wiley & Sons, vol. 36(4), pages 2207-2237, December.
    2. Lambert, Tamara A. & Jones, Keith L. & Brazel, Joseph F. & Showalter, D. Scott, 2017. "Audit time pressure and earnings quality: An examination of accelerated filings," Accounting, Organizations and Society, Elsevier, vol. 58(C), pages 50-66.
    3. Anil Arya & Brian Mittendorf, 2018. "Endogenous timing when a vertically integrated producer supplies a rival," Journal of Regulatory Economics, Springer, vol. 54(2), pages 105-123, October.
    4. Ravi Sen & Joobin Choobineh & Subodha Kumar, 2020. "Determinants of Software Vulnerability Disclosure Timing," Production and Operations Management, Production and Operations Management Society, vol. 29(11), pages 2532-2552, November.
    5. Xu Guan & Ying‐Ju Chen, 2016. "Timing of information acquisition in a competitive environment," Naval Research Logistics (NRL), John Wiley & Sons, vol. 63(1), pages 3-22, February.
    6. Martin Dierker & Avanidhar Subrahmanyam, 2017. "Dynamic Information Disclosure," Contemporary Accounting Research, John Wiley & Sons, vol. 34(1), pages 601-621, March.
    7. Jeffrey T. Doyle & Matthew J. Magilke, 2013. "Decision Usefulness and Accelerated Filing Deadlines," Journal of Accounting Research, Wiley Blackwell, vol. 51(3), pages 549-581, June.
    8. Edward James Anderson & Shu-Jung Sunny Yang, 2015. "The Timing of Capacity Investment with Lead Times: When Do Firms Act in Unison?," Production and Operations Management, Production and Operations Management Society, vol. 24(1), pages 21-41, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Calabrese, Kristyn, 2023. "The effects of time pressure on audit fees," Advances in accounting, Elsevier, vol. 63(C).
    2. Dong, Bei & Nash, Jonathan & Xu, Le, 2022. "Indirect effects of regulatory change: Evidence from the acceleration of the 10-K filing deadline," Advances in accounting, Elsevier, vol. 56(C).
    3. Rajat Mishra & Randy Napier & Mahmut Yasar, 2019. "Do competitors respond to capacity changes? Evidence from U.S. manufacturers," Operations Management Research, Springer, vol. 12(3), pages 159-172, December.
    4. Markus Jung & Mischa Seiter, 2021. "Towards a better understanding on mitigating algorithm aversion in forecasting: an experimental study," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(4), pages 495-516, December.
    5. Moritzen, Mark Raun & Schandlbauer, Alexander, 2020. "The impact of competition and time-to-finance on corporate cash holdings," Journal of Corporate Finance, Elsevier, vol. 65(C).
    6. Cao, June & Ee, Mong Shan & Hasan, Iftekhar & Huang, He, 2024. "Asymmetric reactions of abnormal audit fees jump to credit rating changes," The British Accounting Review, Elsevier, vol. 56(2).
    7. Dafydd Mali & Hyoung‐joo Lim, 2021. "Do Relatively More Efficient Firms Demand Additional Audit Effort (Hours)?," Australian Accounting Review, CPA Australia, vol. 31(2), pages 108-127, June.
    8. Tai‐Liang Chen & Ying Kuang, 2023. "Endogenous timing, strategic tariff game and bilateral trade in vertical oligopoly," Pacific Economic Review, Wiley Blackwell, vol. 28(1), pages 74-96, February.
    9. Wei, Liqun & Zhang, Jianxiong, 2021. "Strategic substitutes or complements? The relationship between capacity sharing and postponement flexibility," European Journal of Operational Research, Elsevier, vol. 294(1), pages 138-148.
    10. Chung-Hui Chou, 2023. "An analysis of managerial delegation in a market with vertically-integrated producer owning an essential input monopolistically," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 247-265, February.
    11. Christensen, Brant E. & Newton, Nathan J. & Wilkins, Michael S., 2021. "How do team workloads and team staffing affect the audit? Archival evidence from U.S. audits," Accounting, Organizations and Society, Elsevier, vol. 92(C).
    12. Su, Kun & Zhang, Miaomiao & Liu, Chengyun, 2022. "Financial derivatives, analyst forecasts, and stock price synchronicity: Evidence from an emerging market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    13. Zhang, Wei & Huang, Ke & Feng, Xu & Zhang, Yongjie, 2017. "Market maker competition and price efficiency: Evidence from China," Economic Modelling, Elsevier, vol. 66(C), pages 121-131.
    14. Zach Zhizhong Zhou & Vidyanand Choudhary, 2022. "Impact of Competition from Open Source Software on Proprietary Software," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 731-742, February.
    15. Lambert, Tamara A. & Jones, Keith L. & Brazel, Joseph F. & Showalter, D. Scott, 2017. "Audit time pressure and earnings quality: An examination of accelerated filings," Accounting, Organizations and Society, Elsevier, vol. 58(C), pages 50-66.
    16. Huang, Song & Guan, Xu & Xiao, Binqing, 2018. "Incentive provision for demand information acquisition in a dual-channel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 42-58.
    17. Toni Šušak, 2020. "The effect of regulatory changes on relationship between earnings management and financial reporting timeliness: The case of COVID-19 pandemic," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 453-473.
    18. Subodha Kumar & Rakesh R. Mallipeddi, 2022. "Impact of cybersecurity on operations and supply chain management: Emerging trends and future research directions," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4488-4500, December.
    19. Bryan K. Church & Narisa Tianjing Dai & Xi (Jason) Kuang & Xuejiao Liu, 2020. "The Role of Auditor Narcissism in Auditor–Client Negotiations: Evidence from China," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1756-1787, September.
    20. Nien-Su Shih, 2024. "Does Using the Extended Audit Report Decrease Information Asymmetry in Family Firms?," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 14(1), pages 1-3.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:popmgt:v:32:y:2023:i:3:p:762-779. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1937-5956 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.