Decision Usefulness and Accelerated Filing Deadlines

50 Pages Posted: 21 Jan 2010 Last revised: 28 Dec 2013

See all articles by Jeffrey T. Doyle

Jeffrey T. Doyle

Utah State University

Matthew J. Magilke

Claremont McKenna College - Robert Day School of Economics and Finance

Date Written: June 1, 2013

Abstract

In this study, we examine the impact of the SEC’s decision to accelerate the filing of 10-Ks. The SEC argued that the accelerated deadline would increase the relevance of the disclosures, making the reports more useful. Opponents countered that the accelerated deadline would decrease the representational faithfulness of the disclosures, especially for smaller firms. We document a significant decrease in the 10-K market reaction for smaller firms as they accelerate from 90 to 75 days. For larger firms we find no significant change in the market reaction from 90 to 75 days. However, as these larger firms accelerate their 10-K deadline to 60 days, we find a significant increase in the market reaction. We also examine changes in reporting quality, shifts in information content, and changes in 10-K filing order and clustering and find results that are consistent with accelerated filing having significant impacts on representational faithfulness and relevance.

Keywords: 10-K, SEC Disclosures, SOX, Disclosure Timing

JEL Classification: M41

Suggested Citation

Doyle, Jeffrey T. and Magilke, Matthew J., Decision Usefulness and Accelerated Filing Deadlines (June 1, 2013). Journal of Accounting Research, Vol. 51, No. 3, June 2013, pp:549-581, Available at SSRN: https://ssrn.com/abstract=1539625 or http://dx.doi.org/10.2139/ssrn.1539625

Jeffrey T. Doyle (Contact Author)

Utah State University ( email )

College of Business
Logan, UT 84322-3540
United States

Matthew J. Magilke

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

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