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


  • Fujitani, Ryosuke


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.

Suggested Citation

  • Fujitani, Ryosuke, 2019. "Financial reporting frequency and external finance : Evidence from a quasi-natural experiment," Working Paper Series 230, Management Innovation Research Center, School of Business Administration, Hitotsubashi University Business School.
  • Handle: RePEc:hit:hmicwp:230
    Note: This version: August 2019, The latest version:

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    financial reporting frequency; quarterly reporting; quasi-private firms; external finance; pecking order theory;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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