The co-authored research article of Professor Tomoyasu Yamaguchi, Faculty of Commerce, titled “Does mandatory quarterly reporting induce managerial myopic behavior? Evidence from Japan” has been published online on Finance Research Letters, one of the leading journals in financial area

This study examined if mandatory quarterly reporting induce managerial myopic behaviors at Japanese firms. We found the following tendencies: a) mandatory quarterly reporting is associated with an increase in managerial myopic behavior, proxied by real earnings management; b) the said association is stronger for firms with higher foreign ownership. These findings suggest that quarterly reporting which provides timely information on firms, facilitates investors’ short-termism and as a result, induce managerial myopic behavior. Japan is now in the midst of debate to abolish quarterly reporting and we expect this study will help the further consideration.