A study of the association between financial reporting frequency and management myopia

Subject Areas : Management Accounting

Yasser Rezaei Pitenoei ¹ , Mohammad Gholamrezapoor ²

1 - Assistant Professor of Accounting, University of Guilan, Rasht, Iran
2 - MA in Accounting.

Received: 2018-10-31 Accepted : 2018-12-22 Published : 2019-12-22

Keywords: financial reporting frequency, management myopia, multivariate logistic regressi,

Abstract :

Increased financial reporting frequency is characterized as an appropriate mechanism which contributes to the enhancement of managerial information transparency and influences investment decision-making process. Despites of these significant influences, however, some studies reveal that it can persuade CEOs to adopt myopic approaches. The present study thus seeks to investigate the relationship between financial reporting frequency and management myopia in the firms listed on the Tehran Stock Exchange over the period of 2013-2017. In pursuit of this goal, the research hypothesis is built upon a sample of 51 listed firms and then tested using multivariate logistic regression model. The results document a significantly positive relationship between financial reporting frequency and managerial myopia. In other words, increasing the frequency of financial reporting will lead to management myopia, which causes executives to ignore investment in R&D, marketing, and long-term activities that benefit the company.

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