Inventory at The Fiscal Year-End: Everything out, Nothing in

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On average, companies artificially reduce their inventories by up to six percent in time for the fiscal year-end. These are the findings of a study by Professor Kai Hoberg (Kühne Logistics University), Florian Badorf (Kühne Logistics University and Leuphana University of Lüneburg), and Lars Lapp (Boston Consulting Group). Based on extensive financial data from 4,877 companies listed on American stock exchanges, they examined the fiscal year’s influence on inventory levels.

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The article The inverse hockey stick effect: an empirical investigation of the fiscal calendar’s impact on firm inventories can be viewed in the pre-print section of the renowned International Journal of Production Research.