The Struggle for a Common Interim Reporting Frequency Regime in Europe
Accounting in Europe, 2012, vol. 9, issue 2, 191-226
This paper analyzes the effect of the Transparency Directive (TD) on interim reporting frequency in the European Union (EU). The TD defines the minimum content of annual and interim reports. In contrast to the USA, quarterly financial reporting is currently not mandatory in the EU. However, Member States and stock market operators can enact stricter local regulations. In October 2011, the Commission published a draft to modernize the TD proposing to abolish mandatory quarterly reporting across the EU. This surprising amendment is in contrast to the Commission's original intention. This article analyzes the reporting frequency regulation in the EU and the potential effect of abolishing mandatory quarterly reporting on the reporting frequency. I find that voluntary quarterly reporting is a function of firm, industry and country characteristics and, although managers are reluctant to change reporting frequency, abolishing mandatory quarterly reporting might lead to a reduction of quarterly reporting in several countries in the long run. This could have significant effects on, for instance, the information asymmetry in these countries that regulators should consider. On a more general note, given the variety of opinions on the ‘right’ interim reporting requirements in the EU, results from academic research could probably further facilitate a more fact-based debate on the issue and further research should investigate the capital market and real business effects of reporting frequency regulation in the specific EU context.
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:acceur:v:9:y:2012:i:2:p:191-226
Ordering information: This journal article can be ordered from
Access Statistics for this article
Accounting in Europe is currently edited by Lisa Evans
More articles in Accounting in Europe from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().