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

39 Pages Posted: 16 Aug 2010 Last revised: 7 May 2012

See all articles by Joost Impink

Joost Impink

University of Florida

Martien Jan Peter Lubberink

Victoria University of Wellington - School of Accounting and Commercial Law

Bart van Praag

University of Amsterdam - Business School

David Veenman

University of Amsterdam - Amsterdam Business School (ABS)

Date Written: May 7, 2012

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; that Section 404 compliance does not affect filing timeliness for firms with effective internal controls; and that about half the firms with internal control weaknesses file late. As a consequence, many Section 404 material weaknesses trigger negative abnormal returns around late filing notifications. Lastly, market reactions to late filing notifications are more negative when management provides no meaningful explanation for the delay, consistent with incentives to withhold bad news.

Keywords: Form 10-K, Rule 12b-25, accelerated filing, SOX Section 404, internal controls

JEL Classification: G14, G18, K22, M41

Suggested Citation

Impink, Joost and Lubberink, Martien Jan Peter and van Praag, Bart J. and Veenman, David, Did Accelerated Filing Requirements and Sox Section 404 Affect the Timeliness of 10-K Filings? (May 7, 2012). Review of Accounting Studies, Vol. 17, No. 2, pp. 227-253, 2012. Available at SSRN: https://ssrn.com/abstract=1659753

Joost Impink

University of Florida ( email )

PO Box 117166
336 GER
Gainesville, FL 32611
United States

Martien Jan Peter Lubberink

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

New Zealand
+64 4 463 5968 (Phone)

Bart J. Van Praag

University of Amsterdam - Business School ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

David Veenman (Contact Author)

University of Amsterdam - Amsterdam Business School (ABS) ( email )

Roetersstraat 18
Amsterdam, 1018WB
Netherlands

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