Did Accelerated Filing Requirements and SOX Section 404 Affect the Timeliness of 10-K Filings?

Impink, Joost and Lubberink, Martien and van Praag, Bart and Veenman, David (2012) Did Accelerated Filing Requirements and SOX Section 404 Affect the Timeliness of 10-K Filings? Review of Accounting Studies, 17 (2). 227–253. ISSN 1380-6653

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Abstract

This paper examines the effect of Sarbanes-Oxley provisions on 10-K filing delays. We find that tightened filing deadlines for accelerated and large accelerated filers are not associated with changes in the incidence of late filing. While Section 404 compliance does not affect filing timeliness for firms with effective internal controls, we find that about half the firms disclosing internal control weaknesses are late filers. As a consequence, many Section 404 material weakness firms experience negative abnormal returns around late filing notifications before filing the 10-K. Lastly, we find that market reactions to late filing notifications are more negative when management provides no meaningful explanation for the delay, consistent with managers’ incentives to withhold bad news.

Item Type:
Journal Article
Journal or Publication Title:
Review of Accounting Studies
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1402
Subjects:
ID Code:
61980
Deposited By:
Deposited On:
28 Jan 2013 21:14
Refereed?:
Yes
Published?:
Published
Last Modified:
01 Apr 2020 03:04