Why do companies purchase timely quarterly reviews?

Mike Ettredge, Dan Simon, David Smith, Mary Stone

Research output: Contribution to journalArticlepeer-review

33 Scopus citations


The SEC encourages companies to have their quarterly financial information reviewed by an independent accountant prior to filing Forms 10-Q (i.e., timely review). Many companies, however, choose to have their quarterly data reviewed only at year-end. Companies contracting for timely reviews are hypothesized to be seeking a higher level of monitoring because of higher internal and external agency costs. Empirical analyses support this hypothesis. The likelihood that a company purchases timely reviews is significantly associated with several proxies for internal and external agency costs.

Original languageEnglish
Pages (from-to)131-155
Number of pages25
JournalJournal of Accounting and Economics
Issue number2
StatePublished - Sep 1994
Externally publishedYes


  • Agency costs
  • Auditor
  • Contracting
  • Monitoring
  • Quarterly financial data


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