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Analyzing late SEC filings for differential impacts of IS and accounting issues

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  • Cao, Jian
  • Calderon, Thomas
  • Chandra, Akhilesh
  • Wang, Li

Abstract

This paper investigates differential market response to the reasons that companies provide for late SEC filings of 10-K and 10-Q reports. Specifically, we examine the market reaction to late filings when the stated reasons are related to information systems (IS) issues versus accounting and other issues. We find that the reasons stated for delayed filings on Form 12b-25 explain differences in market response. More negative market returns are associated with filing delays caused by IS issues, SOX implementations, and SEC investigations. Accounting and administrative reasons are less significant. These results suggest that late filers bear different costs of noncompliance with SEC filing requirements depending on whether the underlying reasons are systems-related or accounting-related.

Suggested Citation

  • Cao, Jian & Calderon, Thomas & Chandra, Akhilesh & Wang, Li, 2010. "Analyzing late SEC filings for differential impacts of IS and accounting issues," International Journal of Accounting Information Systems, Elsevier, vol. 11(3), pages 189-207.
    • Handle: RePEc:eee:ijoais:v:11:y:2010:i:3:p:189-207
    DOI: 10.1016/j.accinf.2010.07.010
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    Cited by:

    1. Jian Cao & Feng Chen & Julia L. Higgs, 2016. "Late for a very important date: financial reporting and audit implications of late 10-K filings," Review of Accounting Studies, Springer, vol. 21(2), pages 633-671, June.
    2. Syed Emad Azhar Ali & Fong-Woon Lai & Rohail Hassan & Muhammad Kashif Shad, 2021. "The Long-Run Impact of Information Security Breach Announcements on Investors’ Confidence: The Context of Efficient Market Hypothesis," Sustainability, MDPI, vol. 13(3), pages 1-27, January.

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