14-Week quarters

Rick Johnston; Andrew J. Leone; Sundaresh Ramnath; Ya wen Yang

doi:10.1016/j.jacceco.2011.06.003

14-Week quarters

Rick Johnston, Andrew J. Leone^*, Sundaresh Ramnath, Ya wen Yang

^*Corresponding author for this work

Accounting Information and Management

Research output: Contribution to journal › Article › peer-review

7 Scopus citations

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)
Pages (from-to)	271-289
Number of pages	19
Journal	Journal of Accounting and Economics
Volume	53
Issue number	1-2
DOIs	https://doi.org/10.1016/j.jacceco.2011.06.003
State	Published - Feb 2012

Keywords

Analysts
Fiscal year
Market efficiency

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

Access to Document

10.1016/j.jacceco.2011.06.003

Cite this

@article{381c80659fcb43179db12ab43308eaec,

title = "14-Week quarters",

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.",

keywords = "Analysts, Fiscal year, Market efficiency",

author = "Rick Johnston and Leone, {Andrew J.} and Sundaresh Ramnath and Yang, {Ya wen}",

year = "2012",

month = feb,

doi = "10.1016/j.jacceco.2011.06.003",

language = "English (US)",

volume = "53",

pages = "271--289",

journal = "Journal of Accounting and Economics",

issn = "0165-4101",

publisher = "Elsevier",

number = "1-2",

}

TY - JOUR

T1 - 14-Week quarters

AU - Johnston, Rick

AU - Leone, Andrew J.

AU - Ramnath, Sundaresh

AU - Yang, Ya wen

PY - 2012/2

Y1 - 2012/2

N2 - 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.

AB - 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.

KW - Analysts

KW - Fiscal year

KW - Market efficiency

UR - http://www.scopus.com/inward/record.url?scp=84857048308&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84857048308&partnerID=8YFLogxK

U2 - 10.1016/j.jacceco.2011.06.003

DO - 10.1016/j.jacceco.2011.06.003

M3 - Article

AN - SCOPUS:84857048308

VL - 53

SP - 271

EP - 289

JO - Journal of Accounting and Economics

JF - Journal of Accounting and Economics

SN - 0165-4101

IS - 1-2

ER -

14-Week quarters

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this