We develop a cost-benefit tradeoff that provides new insights into the frequency with which firms should be required to report the results of their operations to the capital market. The benefit to increasing the frequency of financial reporting is that it causes market prices to better deter...

In this paper, presented to the Economic and Monetary Affairs Committee of the European Parliament, Nicolas Véron discusses whether the EU should adopt the controversial IFRS 8 standard, a convergence project on how companies should report the performance of their individual business segments....