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Not All Late Filers Are the Same: Distinguishing between Differences in Filing Behaviour

Author

Listed:
  • Thomas Selleslagh

    (Department of Business, Vrije Universiteit Brussel, 1050 Ixelles, Belgium)

  • Stefanie Ceustermans

    (Department of Business, Vrije Universiteit Brussel, 1050 Ixelles, Belgium)

  • Lara Stas

    (Interfaculty Center for Data Processing and Statistics, Core Facility, Vrije Universiteit Brussel, 1050 Brussel, Belgium
    Biostatistics and Medical Informatics Research Group, Faculty of Medicine and Pharmacy, Department of Public Health, Vrije Universiteit Brussel, 1050 Brussel, Belgium)

Abstract

This paper investigates the association between private firms’ timeliness of financial reporting and financial health by exploring firms’ reporting behaviour over a longer period of time (9 years). We show that 9% of all firms are consistently late every year and find significant differences in the association between firms’ financial health and late filing depending on their past filing behaviour. We find a negative association between firms’ financial health and late filing. However, our research also shows the opposite (i.e., positive) association for firms who were late consistently. Our results suggest that other motivations besides obfuscating bad performance might cause firms to delay the disclosure of their financial statements.

Suggested Citation

  • Thomas Selleslagh & Stefanie Ceustermans & Lara Stas, 2021. "Not All Late Filers Are the Same: Distinguishing between Differences in Filing Behaviour," Sustainability, MDPI, vol. 13(19), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10862-:d:646936
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    References listed on IDEAS

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