Abstract
Many firms define their fiscal quarters as 13-week periods so that each fiscal year contains 52 weeks, which leaves out one or two day(s) a year. To compensate, one extra week is added every fifth or sixth year and, consequently, one quarter therein comprises 14 weeks. We find evidence of predictable forecast errors and stock returns in 14-week quarters, suggesting that analysts and investors do not, on average, adjust their expectations for the extra week. The ease with which 14-week quarters can be predicted, and expectations adjusted, suggests a surprising lack of effort on the part of analysts and investors.
Original language | English (US) |
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Pages (from-to) | 271-289 |
Number of pages | 19 |
Journal | Journal of Accounting and Economics |
Volume | 53 |
Issue number | 1-2 |
DOIs | |
State | Published - Feb 2012 |
Keywords
- Analysts
- Fiscal year
- Market efficiency
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics