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The Informativeness of Quarterly Financial Reporting: The Portuguese Case

Author

Listed:
  • Carlos F. Alves

    (CEMPRE, Faculdade de Economia, Universidade do Porto)

  • F. Teixeira dos Santos

    (Faculdade de Economia, Universidade do Porto and LIACC/UP)

Abstract

With the Directive 2004/109/EC, of December 15, 2004 – Transparency Directive –, the European Union decided not to require listed companies to disclose financial information in the first and third quarters of each year. Each EU country now has to decide whether to oblige its companies to disclose this information. Using a sample of 1751 firm-earnings announcements between 1994 and 2004, this paper ascertains the informativeness of quarterly financial reporting in Portugal, one of the seven European countries where the disclosure of such information is currently compulsory in all quarters. Evidence suggests that the information of the first and third quarters, both in terms of price volatility and trading volume, is significant and not inferior to that of the remaining earnings announcements.

Suggested Citation

  • Carlos F. Alves & F. Teixeira dos Santos, 2005. "The Informativeness of Quarterly Financial Reporting: The Portuguese Case," FEP Working Papers 177, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:177
    as

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    File URL: http://www.fep.up.pt/investigacao/workingpapers/05.06.23_WP177_carlos.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Capital markets-based research; interim accounting disclosure; market reaction; market regulation;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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