Abstract
Although the major securities exchanges have been the prime source of organized demand for quarterly accounting data, they have not been particularly active in assessing the significance of the reports they require to the investing public. Accountants have made attempts to assess both the usefulness of quarterly data and the degree to which they are used by or influence investors. Some of their major efforts will be reviewed later. But it will be seen that past investigations into the significance of actual use and/or influence of quarterly accounting data have not satisfactorily answered the research questions listed below. The purpose of this study is to provide information and motivation to accountants and managers who have to make decisions affecting the resources devoted to improving quarterly accounting measurements by attempting to answer the following two empirical research questions: 1. Do quarterly accounting data, in the form of public earnings announcements, have a significant effect on investor decisions as reflected in market price changes? 2. Does there appear to be a significant difference between the influence on investors of quarterly and annual earnings announcements? Does the difference, if any, reflect investor awareness of the lesser quality of measurement widely attributed to measurements of quarterly income?
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