Financial reporting timeliness and the value relevance of earnings: Evidence from banks in the MENA countries

This study examines whether financial reporting lag improves the value relevance of past and current earnings for future earnings. Examining a sample of listed banks from 12 MENA countries over the 1999 to 2014 period, the empirical analysis reveals that a change in the current stock price of banks with a higher financial reporting lag contains more information about their future earnings than does a change in the stock price with a lower financial reporting lag. This association is weaker for larger and riskier banks operating in an active stock market with significant Internet use and disclosure and investor protection.