Financial Reporting Frequency and Managerial Learning from Stock Price

Mandatory reporting frequency, informed trading, and corporate myopia

“…setting, previous studies show that increasing the mandatory reporting frequency leads to higher earnings timeliness for voluntary adopters (Butler et al, 2007) and lower information asymmetry (Fu et al, 2012). In addition, Hillegeist et al (2020) document a positive feedback effect where managers learn more from the stock price under the frequent than under the infrequent regime.…”