Journal of Business & Economic Policy

An Examination of Factors Affecting Financial Statement Placement Order
Charles W. Mulford, Biro Conde

Abstract
Research has shown that emphasis can be used to affect perception when financial results are reported. Financial statement placement order is one means of providing emphasis. Our objective is to see if we can identify systematic differences across firms that would help explain the financial statement placement order employed. Using a sample of 400 public companies drawn from four different revenue quartiles, we find that while the balance sheet is much more likely to be the lead-in financial statement, firms leading with the statement of operations are larger and more profitable. These results are relevant to CFOs, auditors, regulators, analysts and investors.

Full Text: PDF