Empirical Study of the Timeliness and Reliability of Information Disclosure
Xueyi Zhu · Zhongnan Cai-jing Daxue xuebao · 2008
The quality of information disclosure depends on the timeliness and reliability of disclosure.The author analyzes the relationship between timeliness and reliability based on theory and demonstration,and finds that there exists a negative relationship between timeliness and reliability of information disclosure,the listed firms prefer to the timeliness when the timeliness collides with reliability.The indifference of reliability makes many listed firms report annals as quickly as possible,and then the firms do repeated restatements on annual reports.The stock exchange should carry out some punishments aiming at restatements to effectively improve the reliability of information disclosure.At the same time,when doing decision-making,the users of accounting information not only pay attention to the timeliness,and also realize latent unreliability of annals,that is to say restatements on annual reports.