Regulating the Timing of Disclosure: Insights from the Acceleration of 10-K Filing Deadlines
43 Pages Posted: 8 Jan 2013 Last revised: 28 Dec 2013
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Regulating the Timing of Disclosure: Insights from the Acceleration of 10-K Filing Deadlines
Regulating the Timing of Disclosure: Insights from the Acceleration of 10-K Filing Deadlines
Date Written: December 1, 2012
Abstract
We study the effects of regulating the timing of disclosure on the quality of accounting information, using a 2003 U.S. regulatory change that accelerates 10-K filing deadlines as a research setting. Employing a difference-in-differences design, we find that the likelihood of issuing financial statements that are later restated increases for firms that are required to file more quickly, relative to firms whose filing practices are not affected by the regulatory change. This effect is particularly pronounced during the audit busy season, when auditors also face significant time pressure. These results are consistent with a tradeoff between how quickly accounting reports are required to be filed and the reliability of the resulting reports.
Keywords: disclosure regulation, SEC filings, financial reporting quality, misstatements
JEL Classification: M41, M45, G14, G18, G38, K22
Suggested Citation: Suggested Citation
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