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Post by Sapphire Capital on Aug 11, 2008 20:29:46 GMT 4
Relevance, Reliability and the Acceleration of 10-K Filing Deadlines Lisa Bryant-Kutcher Colorado State University - Department of Accounting Emma Yan Peng Fordham University David P. Weber University of Connecticut - Department of Accounting July 2008 Abstract: Motivated by recent regulatory changes that accelerate 10-K filing deadlines, we study the effects of regulating the timing of disclosure on the relevance and reliability of accounting information. Our examination of relevance focuses on informativeness (as measured by absolute stock returns around filing dates) and timeliness (as measured by how quickly accounting information is reflected in stock prices over the first quarter following fiscal year-end). For reliability we focus on the likelihood that filings are subsequently restated. Employing a difference-in-differences design, we find that firms required to file more quickly experience improvements in both informativeness and timeliness, but that firms not directly affected by the regulation also experience similar changes over the same period, suggesting that the changes are attributable to other time period-specific factors rather than filing deadlines. By contrast, we find that firms forced to file more quickly experience a significant increase in restatements, while firms that voluntarily file quickly do not. Overall, our results provide little support for the view that accelerating filing deadlines improves the relevance of accounting information, and they highlight that such regulation can impose costs in the form of reduced reliability. papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1160036_code336191.pdf?abstractid=1160036&mirid=3
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