The Importance of Thorough Financial Reporting During COVID-19 Pandemic: Empirical Evidence From Borsa Istanbul

Mustafa Oğuz

A chapter in Contemporary Issues in Social Science, 2021, vol. 106, pp 239-250 from Emerald Group Publishing Limited

Abstract: On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The policy responses to this outbreak have caused many impacts on our daily life and economic activities around the world. Also, this outbreak has affected financial reporting practices of the firms. Thorough financial reporting in such uncertain times plays an essential role in providing qualitative financial information. It is very important for a firm to increase transparency and report on the impacts of possible risks in times of uncertainty. Furthermore, stock markets may react to COVID-19 as they have already responded to major events like disasters, news, environmental and political events. This study investigates whether and how firms’ providing information about COVID-19 pandemic in their financial reports plays a role in explaining the stock market reactions. For this, annual reports of companies included in BIST-100 index in Turkey is used to analyze the capacity for detecting risks early and determine whether there is an association between early reporting about COVID-19 and the stock risk.

Keywords: COVID-19; financial reporting; annual reports; stock market reactions; Borsa Istanbul; World Health Organization (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:csefzz:s1569-375920210000106015

DOI: 10.1108/S1569-375920210000106015

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