Interim Reporting

SNIC 2017/7-138


SNAC Small

Principal Investigator:

Joachim Landström


Uppsala universitet

Start Date:


End Date:


Primary Classification:

50202: Business Administration




In the last decade, there have been continuous discussions as to whether stock markets impose excessive disclosure requirements. In Sweden, the expression “kvartalskapitalism" is used to denote the shortsighted view on corporate decision­ making that quarterly reports nurture. The EU has recently allowed member states to reduce the reporting frequency by removing interim reports. Several arguments support the use of interim reports; and in particular, investors deem interim reports to be timely value relevant information. Little is known on interim reporting in Europe and we find less than a handful Swedish accounting and finance studies. Our team has established a vast database with hand­collected information. Among other things, we have more than 14,000 interim reports and announcement dates. Our research will increase knowledge of the interplay between interim reporting and financial analysts interpretation of relevant information. But in particular, we contribute to the international research frontier by addressing two issues. First, we improve on, and test, models used in the assessment of analyst performance and in the estimation of capital cost. Second, we make computer ­aided content analyses of management tone and texture and compare it with management characteristics. In particular, we test if management tone has incremental information content to numbers. The empirical analyses rely on regression modelling and it is rooted in standard accounting/finance methodology.