Heterogeneity of fiscal year-end choice: Exploring influences and effects by examining fiscal year-end changes.

摘要

In my dissertation I explore motivations and effects of the accounting choice of fiscal year-end (FYE). I demonstrate that the choice is neither static nor uniform. A nontrivial number of firms initially choose an FYE that differs from that of the majority of their industry. The majority and nonmajority firms differ along the dimensions of performance, strategy, administrative costs and information environment. I further explore whether these differences are evident in firms that changed their FYE. I find some evidence that firms may select an initial FYE or subsequently change their FYE in an effort to influence their subindustry group membership. I find evidence that firms may make their FYE choice to take advantage of potential savings in administrative costs. I find evidence that the choice may be influenced by information environment factors. I also explore the potential benefits/costs of the differences in comparability that result from differences in FYE choice. My results suggest a positive relationship between the number of firms in an industry sharing an FYE or quarter end and analyst forecast error, dispersion and optimism. I find results consistent with the notion that a firm making a seasoned decision to change FYE can affect its analyst following. I do not find consistent evidence that a seasoned change can affect analyst forecast properties.