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Did accelerated filing requirements and SOX Section 404 affect the timeliness of 10-K filings?

Author

Listed:
  • Joost Impink

    (University of Florida)

  • Martien Lubberink

    (Lancaster University Management School
    DNB (The Netherlands Bank))

  • Bart Praag

    (University of Amsterdam)

  • David Veenman

    (Erasmus University Rotterdam)

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.

Suggested Citation

  • Joost Impink & Martien Lubberink & Bart Praag & David Veenman, 2012. "Did accelerated filing requirements and SOX Section 404 affect the timeliness of 10-K filings?," Review of Accounting Studies, Springer, vol. 17(2), pages 227-253, June.
    • Handle: RePEc:spr:reaccs:v:17:y:2012:i:2:d:10.1007_s11142-011-9172-5
    DOI: 10.1007/s11142-011-9172-5
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    1. Ezra, Dvir Aviam, 2025. "Disclosure regulations during crisis: The case of TASE after October 7th," SAFE Working Paper Series 454, Leibniz Institute for Financial Research SAFE.

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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