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Determinants and consequences of sales/production report issuance

Author

Listed:
  • Fu, Renhui
  • Ma, Chen
  • Zeng, Yamin
  • Zhang, Junsheng

Abstract

This study empirically examines the determinants and consequences of firms’ issuance of sales/production reports. Our findings demonstrate that firms choose to issue these reports in order to meet the information needs of investors, supply chain participants, and industry peers. As a result, these firms experience higher firm value, attributed to improvements in the information environment, increased trade credits, and strengthened tacit collusion. Our results remain robust when considering endogeneity and when replacing the binary issuance variable with the frequency of sales/production reports. Furthermore, the stock market shows a significant response to the information contained in these reports, reflected in larger abnormal returns and trading volumes, and the market reaction is positively related to the news conveyed by these reports. Overall, our findings indicate that the issuance of sales/production reports brings about economic benefits.

Suggested Citation

  • Fu, Renhui & Ma, Chen & Zeng, Yamin & Zhang, Junsheng, 2024. "Determinants and consequences of sales/production report issuance," The British Accounting Review, Elsevier, vol. 56(5).
    • Handle: RePEc:eee:bracre:v:56:y:2024:i:5:s0890838923001233
    DOI: 10.1016/j.bar.2023.101266
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    Keywords

    Sales/production reports; Information environment; trade credit; tacit collusion;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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