The Predictive Power of Interim Financial Reports for The Future Performance‏: ‏An Empirical ‎Evidence from Palestine

  • Authors

    • Hilal Rabayah PhD Student, Arab American University: Jenin, Palestine, Faculty of Administrative and Financial Science Department of Accounting and Finance
    https://doi.org/10.14419/ksx52229

    Received date: October 22, 2025

    Accepted date: December 1, 2025

    Published date: December 20, 2025

  • Financial Disclosure; Financial Information Quality; Information Disclosure

  • Abstract

    Purpose – This study investigates the predictive and reliability power of interim financial reports ‎‎(IFRs), whether quarterly or semi-annual, in forecasting future performance. It focuses on the ‎relevance of interim financial ratios and their effect on stock returns, given that users often ‎emphasize annual reports and general assembly meetings typically prioritize annual results over ‎interim disclosures.‎

    Design/methodology/approach – A descriptive-analytical approach was employed, utilizing a ‎sample of 20 Palestinian industrial and service firms listed on the Palestine Exchange (PEX). A ‎multiple regression model was used to examine the relationship between stock return (R) and ‎four key independent variables: earnings per share (EPS), sales per share (SPS), firm size (FS), ‎and operating cash flow per share (OCFPS).‎

    Findings – The results indicate that: (1) there is no statistically significant relationship at the 5% ‎level between stock return and either EPS or SPS; (2) a statistically significant relationship exists ‎at the 10% level between stock return and OCFPS; and (3) firm size shows a statistically ‎significant relationship with stock return at the 5% level.‎

    Practical implications – The findings highlight the relevance of IFRs to regulators, ‎policymakers, and corporate managers, underscoring their role in enabling timely decision-making.‎

    Originality/value – To the best of the author's knowledge, this is the first empirical investigation ‎of the influence of interim financial reports on stock returns within the Palestinian market. It fills ‎a research gap and underscores the need to re-evaluate the role of IFRs in investment and ‎corporate decision-making‎.

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  • How to Cite

    Rabayah, H. (2025). The Predictive Power of Interim Financial Reports for The Future Performance‏: ‏An Empirical ‎Evidence from Palestine. International Journal of Accounting and Economics Studies, 12(8), 704-712. https://doi.org/10.14419/ksx52229