A COMPREHENSIVE STUDY OF THE VARIOUS REPORTING FORMATS ADOPTED BY SINGAPORE LISTED COMPANIES IN THEIR FINANCIAL STATEMENTS

Abstract

This paper investigates possible factors for variations in the financial reporting format of Singapore listed companies and examines the effects of the presentation order of financial statements on the stock market. In light of the strong push for international convergence of accounting standards to improve comparability, I examine the annual reports of 428 Singapore Exchange (“SGX”) listed companies for the financial years 2012 and 2013. I find that (1) the presentation order between the income statement and the balance sheet of a firm is strongly associated with its auditor, its profitability, and its earnings structure and (2) the balance sheet reporting format is associated with its auditor and its leverage. I also find that investors react more strongly to the earnings level of a firm if the income statement is presented before the balance sheet, suggesting that the presentation format of information can influence its readers’ perception.