Sector-based analysis of post-financial reporting period events

Alkan, F. (2024). Sector-based Analysis of post-financial reporting period events (Unpublished master's thesis). Sakarya University. The Potential Impact of Post-Financial Reporting Events on Investors and Corporate Decisions We believe that post-financial reporting events have the potential to influence the future decisions of investors and companies. The primary aim of this study is to analyze the impact of post-financial reporting events across various sectors, evaluate the distinguishing characteristics of each sector, and assess the changes these events bring to companies' financial statements. Furthermore, this study seeks to determine whether these post-reporting events differ on a sectoral basis and to analyze their significance for companies. By doing so, it aims to provide financial statement users with a reliable and informed basis for decision-making. For this analysis, the independent audit reports of BIST 100 real sector companies from 2018 to 2023 were downloaded from the official website (www.kap.gov.tr) and uploaded to the MaxQDA data analysis software. Using the software, the notes to the financial statements regarding "Post-Reporting Events" were categorized based on their characteristics and coded sectorally. During the coding process, it was identified that the sectors with the most significant impact on financial reporting were "Energy, Manufacturing, Services, Automotive, and Finance." Sectors with less significant impacts on financial reporting were grouped under the "Other" category, including construction, technology, and marketing sectors. The study analyzed the "Post-Reporting Events" in the independent audit reports of BIST 100 companies from 2018 to 2023 to identify sectoral differences. The findings revealed that the number of non-material event disclosures in the "Energy and Finance" sectors showed an increasing trend during 2018–2019. However, following the impact of Covid-19 in 2020, a significant increase in event disclosures was observed in the "Energy and Manufacturing" sectors. Conversely, the "Automotive and Manufacturing" sectors demonstrated a tendency not to disclose such events. The so-called transparent sectors, namely Energy, Finance, and Services, were found to be subject to numerous regulatory requirements due to legal obligations. As a result, these sectors disclosed a high number of post-reporting events. Sectors that rely on open information sharing after reporting periods provided significant advantages to investors in terms of accessible information. In contrast, sectors with limited information sharing typically exhibited more stable structures due to long-term investment processes and pre-planned RveD projects. These sectors, which generally do not require immediate financial adjustments, often adopt strategic information confidentiality policies due to competitive pressures. For instance, information regarding new product development processes or supply chain costs is often kept confidential to maintain competitive advantage. However, in sectors with limited information sharing, a perceived lack of transparency in long-term projects and macroeconomic issues can negatively impact investor confidence. To mitigate this adverse effect, there is a need to establish a balance between transparency and competitiveness. Regulatory authorities are encouraged to develop a more effective and balanced reporting framework for investors, which could help reduce uncertainty. In conclusion, "Post-Financial Reporting Events" are interpreted differently across sectors, and these events exhibit variability depending on sectoral dynamics. This underscores the importance of sector-specific approaches in understanding and managing post-reporting events. Keywords: Post-Reporting Period Events, Turkish Financial Reporting Standards, BIST Companies