statements and segment disclosures, special disclosures for non-domestic financial
statement users, disclosures of forward-looking information, corporate governance
disclosures, and Internet financial reporting and disclosure. Companies from four de-
veloped economies, (Germany, Italy, Japan, and the United States) and two develop-
ing countries (South Korea and Peoples’ Republic of China) are investigated: Fiat
S.p.A. (Italy), Ford Motor Company (U.S.), Hyundai Motor Company (South Korea),
Jaingling Motor Corporation (China), Toyota Motor Corporation (Japan), and Volk-
swagen AG (Germany).^20
Exhibit 13.2 presents profile information about the companies. It shows that the
companies vary greatly in terms of sales revenue, market capitalization, number of
employees, and extent of activity in nondomestic equity and product markets. For ex-
ample, sales revenue for fiscal year 2001 ranges from US$487 million (Jiangling Mo-
tors Corp.) to US$87,776 million (Toyota Motor Corp.). Hyundai and Jiangling are
listed only on their domestic stock exchanges. In contrast, Toyota’s equity is offi-
cially listed in Japan, the United Kingdom, and the United States, and Fiat, Ford, and
Volkswagen all have equity listed on international stock exchanges in four or more
countries. Fiat, Ford, and Toyota are SEC registrants listed on the New York Stock
Exchange (NYSE). Hyundai, Jiangling, and Volkswagen do not have equity listed on
U.S. stock exchanges. These considerations, along with home market characteristics,
are expected to influence the companies’ disclosure practices.
13.5 PERIODIC FINANCIAL REPORTS
(a) Types, Frequency, and Content of Reports. This section discusses three types of
periodic report: (1) annual reports, (2) interim reports, and (3) announcements of an-
nual general meetings.^21 Securities regulators generally require that listed companies
file annual reports once yearly, and interim reports at least half-yearly. Beyond this
basic requirement, there is much variation in periodic reporting requirements. Some
regulators require certain types of reports (e.g., quarterly financial reports, an-
nouncements of annual general meetings) while others do not. Requirements vary
concerning the distribution and forms of publication of the information contained in
the report, and the nature of the information the reports are required to contain. For
example, the U.S. SEC is unique in requiring domestic companies to provide highly
detailed information disclosures in their proxy statements. Finally, companies may
voluntarily publish reports beyond the required minimums.
13 • 8 CORPORATE FINANCIAL DISCLOSURE: A GLOBAL ASSESSMENT(^20) This analysis is from Frost and Blum (2002).
(^21) This chapter does not discuss other types of periodic reports, such as current reports on Forms 6-K
and 8-K required by the U.S. SEC, and extraordinary reports in Japan, as specified in the Japanese Se-
curities and Exchange Law. Announcements and other materials related to annual general meetings are
not generally considered “periodic reports.” However, because of their importance to investors and other
financial statement users, we include discussion of them here. The names by which periodic reports are
identified vary widely among companies and national jurisdictions. Many annual reports, although dis-
tributed to shareholders, are not titled as such, and their contents follow statutory and regulatory guide-
lines. The greatest variation is in announcements and reports related to forthcoming shareholders’ meet-
ings, also referred to as annual general meetings. For convenience, we refer to this type of report as
“announcement of annual general meeting.”
The most reliable sources of information on financial reporting and disclosure requirements are stock
exchange and government publications. Many stock exchange Web sites provide detailed information and
Web links to relevant regulatory authorities. Stock exchange handbooks, such as Palmiero and Lobo
(2002) also provide useful summaries.