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Journal of Accounting and Economics Vol. 10 No. 4 1988

A comparison of the financial characteristics of December and non-December year-end companies

David B. Smith1; Susan Pourciau2

1 Claremont McKenna College · 2 Florida State University

Abstract

Researchers often restrict their sample selection to either December or non-December Compustat companies. However, no one has rigorously investigated the implications of this restriction. This paper compares financial characteristics of December and non-December year-end companies. December year-end firms are larger and have smaller betas as compared to companies with non-December year-ends. There are some strong industry concentrations in December year-ends, most notably in the regulated or recently deregulated industries. Retail sales firms have primarily non-December year-ends. A comparison of leverage ratios does not reveal a stable systematic difference between December and non-December year-end companies.

DOI
10.1016/0165-4101(88)90008-0
Volume
10
Issue
4
Pages
335-344
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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