14-Week quarters

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

doi:10.1016/j.jacceco.2011.06.003

← Search

Journal of Accounting and Economics Vol. 53 No. 1-2 2012

14-Week quarters

Rick Johnston¹; Andrew J. Leone²; Sundaresh Ramnath²; Ya-wen Yang³

¹ Krannert School of Management, Purdue University, United States · ² University of Miami · ³ Wake Forest University

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.

DOI: 10.1016/j.jacceco.2011.06.003
Volume: 53
Issue: 1-2
Pages: 271-289
Language: en
Sources: bibtex:phds-export.bib openalex crossref

14-Week quarters

Abstract

Cite