Financial reporting frequency and external finance: Evidence from a quasi-natural experiment

Ryosuke Fujitani

No 230, Working Paper Series from Management Innovation Research Center, School of Business Administration, Hitotsubashi University Business School

Abstract: Using a unique institutional background of Japan, this study first examines the effects of the increase in the reporting frequency on corporate financing. From Difference-in-Difference (DiD) analysis, I show that the increase in the reporting frequency increases external finance but not finance from bank. Next, I find that the positive effects of the increase in the reporting frequency are stronger in firms with a) financial constraints, b) ex-ante information asymmetry, and c) more external capital demand. I also find that the firms a) do not change the cash holding intensity, b) invest more, and c) payout more. Unlike prior literature, these findings suggest that the increase in the reporting frequency enhances firm activities.

Keywords: financial reporting frequency; quarterly reporting; quasi-private firms; external finance; pecking order theory (search for similar items in EconPapers)
JEL-codes: G31 G32 M41 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2019-08
New Economics Papers: this item is included in nep-acc and nep-cfn
Note: This version: August 2019, The latest version: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3410252
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30512/070micWP_230.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hit:hmicwp:230

Access Statistics for this paper

More papers in Working Paper Series from Management Innovation Research Center, School of Business Administration, Hitotsubashi University Business School Contact information at EDIRC.
Bibliographic data for series maintained by Digital Resources Section, Hitotsubashi University Library ().