Dissemination of Accruals Information, Role of Semi-Annual Reporting, and Analysts' Earnings Forecasts: Evidence from Japan

Keiichi Kubota, Kazuyuki Suda, Hitoshi Takehara

Research output: Contribution to journalArticle

3 Citations (Scopus)


Our study investigates the effects of dissemination of accounting accruals information on stock prices using Japanese annual reports as our sample. We conduct month-by-month detailed analyses of price adjustment behavior with a particular focus on revisions of analysts' earnings forecasts and changes in trading volume around the period of upcoming semi-annual reports. We find that analysts' forecasts are often revised around this time, and analysts use this as auxiliary information. In addition, an accompanying re-adjustment of abnormal returns and an increase in trading volume are observed. Our findings demonstrate that informational uncertainty initially triggered by the announcement of annual reports decreases as semi-annual reports are disclosed and analysts change their earnings forecasts, and confirms the importance of semi-annual reporting.

Original languageEnglish
Pages (from-to)120-160
Number of pages41
JournalJournal of International Financial Management and Accounting
Issue number2
Publication statusPublished - 2010 Jun 1


ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)
  • Finance

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