I don't think reporting frequency matters as much as the incentives. As long as the company's required to disclose public financials, company's will ALWAYS be

I don't think reporting frequency matters as much as the incentives. As long as the company's required to disclose public financials, company's will ALWAYS be tempted to manipulate earnings at the end of the fiscal year[1]. As to incentives for manipulation, Dell's infractions arguably flowed from flaws in stock option compensation and loose accounting standards.[2] Dell execs were pretty risk tolerant...leveraging up with long calls financed by short puts. [1] http://www.businessinsider.com/pay-practices-that-encourage-executive-dishonesty-2012-9 http://www.businessinsider.com/pay-practices-that-encourage-... [2] http://www.nytimes.com/2013/01/18/business/how-dell-became-entangled-in-options.html http://www.nytimes.com/2013/01/18/business/how-dell-became-e...