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New Publication about Disclosure Deregulation of Quarterly Reporting

Professor Dr. Lars Hornuf has published a new article in the CESifo Working Paper Series under the title "Disclosure Deregulation of Quarterly Reporting." The article emerged in collaboration with Vanessa Behrmann and Professor Dr. Jochen Zimmermann.

The authors investigate the deregulation efforts resulting from the 2015 transposition of the EU’s Transparency Directive into German law and analyze whether a reduction in the minimum content requirements for quarterly reporting increases information asymmetries and decreases firm value. Using a novel dataset of firms that are listed on the Frankfurt Stock Exchange, the results reveal that over the period from 2012 to 2019, lower quarterly reporting levels on average have increased information asymmetry and reduced firm value. The authors find that this effect is stronger for second-tier stocks and firms with low media coverage. The results are robust to potential selection effects regarding firms’ choice of quarterly reporting content levels.

The full article can be downloaded here.

Disclosure Deregulation of Quarterly Reporting