An interim financial reporting protocol became mandatory in Finland as recently as calendar year 1986. This makes the Helsinki Stock Exchange an excellent forum for the investigation of the determinants of periodic reporting in present day European conditions. It is hypothesized that the level of disclosure should be a function of a firm's: governance structure, business risk, market risk, capital structure, stock price adjustment, growth, growth potential and size. As predicted, Finnish interim disclosure over the period 1985 to 1993 is directly related to the quantitative measures of business risk, capital structure, size and market maturity. One other hypothesis is confirmed. Governance is found to be inversely related to disclosure, suggesting that, the greater the institutional concentration of ownership of Finnish firms by other firms, the lower the degree of interim disclosure.
Schadewitz, Hannu J. and Blevins, Dallas R. CCA, CFE, CIA, CMA, C.P.M.
"Major determinants of Interim Disclosures in an Emerging Market,"
American Business Review: Vol. 16
, Article 4.
Available at: https://digitalcommons.newhaven.edu/americanbusinessreview/vol16/iss1/4