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Timeliness of financial reporting: applicability of disclosure theories in an emerging capital market

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  • Stergios Leventis
  • Pauline Weetman

Abstract

This study examines the timeliness with which financial statements are issued by companies in an emerging capital market (Greece). We find that, while all companies meet the regulatory deadline, there is a wide variation between the financial year end and the date of first issue of the financial statements. Significant factors identified by regression analysis are linked to disclosure theories of proprietary costs (using surrogate variables of barriers to entry and industry competition), information cost savings (using surrogate variables of trading volume and public issue) and relative good news or bad news (using surrogate variables of comment in the audit report, and annual change in return on equity). Our results support the predictions of Diamond (1985) and Verrecchia (1983, 1990).

Suggested Citation

  • Stergios Leventis & Pauline Weetman, 2004. "Timeliness of financial reporting: applicability of disclosure theories in an emerging capital market," Accounting and Business Research, Taylor & Francis Journals, vol. 34(1), pages 43-56.
    • Handle: RePEc:taf:acctbr:v:34:y:2004:i:1:p:43-56
    DOI: 10.1080/00014788.2004.9729950
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    8. Hussein Ali Khasharmeh & Khaled Aljifri, 2010. "The Timeliness Of Annual Reports In Bahrain And The United Arab Emirates: An Empirical Comparative Study," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(1), pages 51-71.
    9. Prem Sikka & Colin Haslam & Orthodoxia Kyriacou & Dila Agrizzi, 2007. "Professionalizing Claims and the State of UK Professional Accounting Education: Some Evidence," Accounting Education, Taylor & Francis Journals, vol. 16(1), pages 3-21.
    10. Yuedong Li & Dong Zhang & Xingyu Wang, 2014. "The Influence Of Corporation Governance Structure On Internal Control Audit Report Lag: Evidence From China," Accounting & Taxation, The Institute for Business and Finance Research, vol. 6(2), pages 101-115.
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