The Importance of Thorough Financial Reporting During COVID-19 Pandemic: Empirical Evidence From Borsa Istanbul

Contemporary Issues in Social Science Pub Date : 2021-05-25 DOI:10.1108/S1569-375920210000106015

M. Oğuz

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引用次数: 1

Abstract

On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The policy responses to this outbreak have caused many impacts on our daily life and economic activities around the world. Also, this outbreak has affected financial reporting practices of the firms. Thorough financial reporting in such uncertain times plays an essential role in providing qualitative financial information. It is very important for a firm to increase transparency and report on the impacts of possible risks in times of uncertainty. Furthermore, stock markets may react to COVID-19 as they have already responded to major events like disasters, news, environmental and political events. This study investigates whether and how firms’ providing information about COVID-19 pandemic in their financial reports plays a role in explaining the stock market reactions. For this, annual reports of companies included in BIST-100 index in Turkey is used to analyze the capacity for detecting risks early and determine whether there is an association between early reporting about COVID-19 and the stock risk.

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2019冠状病毒病大流行期间全面财务报告的重要性:来自Borsa Istanbul的经验证据

2020年3月11日，世界卫生组织宣布新冠肺炎疫情为全球大流行。应对疫情的政策对世界各地的日常生活和经济活动产生了许多影响。此外，此次疫情还影响了这些公司的财务报告做法。在这种不确定的时期，全面的财务报告对于提供定性的财务信息至关重要。在不确定时期，提高透明度和报告可能的风险影响对公司来说非常重要。此外，股市可能会对COVID-19做出反应，就像它们已经对灾难、新闻、环境和政治事件等重大事件做出反应一样。本研究调查了公司在其财务报告中提供有关COVID-19大流行的信息是否以及如何在解释股市反应中发挥作用。为此，利用土耳其BIST-100指数成分股公司的年度报告，分析其早期发现风险的能力，并确定早期报告COVID-19与股票风险之间是否存在关联。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Contemporary Issues in Social Science

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