Did accelerated filing requirements and SOX Section 404 affect the timeliness of 10-K filings?
- Joost ImpinkAffiliated withWarrington College of Business Administration, University of Florida
- , Martien LubberinkAffiliated withLancaster University Management SchoolDNB (The Netherlands Bank)
- , Bart van PraagAffiliated withAmsterdam Business School, University of Amsterdam
- , David VeenmanAffiliated withErasmus School of Economics, Erasmus University Rotterdam Email author
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.
KeywordsForm 10-K Rule 12b-25 Accelerated filing SOX Section 404 Internal controls
JEL ClassificationG14 G18 K22 M41
- Did accelerated filing requirements and SOX Section 404 affect the timeliness of 10-K filings?
- Open Access
- Available under Open Access This content is freely available online to anyone, anywhere at any time.
Review of Accounting Studies
Volume 17, Issue 2 , pp 227-253
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- Form 10-K
- Rule 12b-25
- Accelerated filing
- SOX Section 404
- Internal controls
- Industry Sectors
- Author Affiliations
- 1. Warrington College of Business Administration, University of Florida, 336 GER, PO Box 117166, Gainesville, FL, 32611-7166, USA
- 2. Lancaster University Management School, Bailrigg, Lancaster, LA1 4YX, UK
- 3. DNB (The Netherlands Bank), Westeinde 1, 1017 ZN, Amsterdam, The Netherlands
- 4. Amsterdam Business School, University of Amsterdam, Plantage Muidergracht 12, 1018 TV, Amsterdam, The Netherlands
- 5. Erasmus School of Economics, Erasmus University Rotterdam, Burgemeester Oudlaan 50, 3062 PA, Rotterdam, The Netherlands