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Has Form 8-K reporting become timelier post-regulation fair disclosure and the Sarbanes–Oxley Act? Initial evidence

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  • Karim, Khondkar E.
  • Pinsker, Robert E.

Abstract

Our paper examines the timeliness of Form 8-K filings immediately after significant US regulation and legislation. Our events are issuance of regulation fair disclosure by the SEC and Congress’s passage of the Sarbanes–Oxley Act. We use Carter and Soo’s (1999) sample from 1993 for the pre-SOX and pre-FD data. For all firms that filed an 8-K in the sample periods, the post-FD sample filings are timelier than the pre-FD sample, and the post-SOX filings are more timely than most of the post-FD filings. For large firms, the post-SOX sample has significantly shorter filing lags in most cases relative to the post-FD sample, but we only find weak evidence of the shorter filing lags resulting in improved compliance with stated Form 8-K filing deadlines. We conclude that management reporting behavior has positively changed post-SOX, but that the results are less conclusive post-FD.

Suggested Citation

  • Karim, Khondkar E. & Pinsker, Robert E., 2011. "Has Form 8-K reporting become timelier post-regulation fair disclosure and the Sarbanes–Oxley Act? Initial evidence," Research in Accounting Regulation, Elsevier, vol. 23(2), pages 167-171.
    • Handle: RePEc:eee:reacre:v:23:y:2011:i:2:p:167-171
    DOI: 10.1016/j.racreg.2011.06.004
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    References listed on IDEAS

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    1. Carter, ME & Soo, BS, 1999. "The relevance of Form 8-K reports," Journal of Accounting Research, Wiley Blackwell, vol. 37(1), pages 119-132.
    2. Gordon, Lawrence A. & Loeb, Martin P. & Lucyshyn, William & Sohail, Tashfeen, 2006. "The impact of the Sarbanes-Oxley Act on the corporate disclosures of information security activities," Journal of Accounting and Public Policy, Elsevier, vol. 25(5), pages 503-530.
    3. Sengupta, Partha, 2004. "Disclosure timing: Determinants of quarterly earnings release dates," Journal of Accounting and Public Policy, Elsevier, vol. 23(6), pages 457-482.
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    Cited by:

    1. Pieter T. Elgers & May H. Lo & Wenjuan Xie & Le Emily Xu, 2016. "A Contextual Evaluation of Composite Forecasts of Annual Earnings," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-40, September.
    2. Holder, Anthony & Karim, Khondkar & Lin, Karen (Jingrong) & Pinsker, Robert, 2016. "Do material weaknesses in information technology-related internal controls affect firms' 8-K filing timeliness and compliance?," International Journal of Accounting Information Systems, Elsevier, vol. 22(C), pages 26-43.
    3. Franzen, Laurel & Li, Xu & Vargus, Mark E., 2013. "The effect of Sarbanes-Oxley on the timely disclosure of restricted stock trading," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 47-52.
    4. Lo, May H. & Xu, Le (Emily), 2013. "Regulation FD and analysts’ vs. investors’ weightings of the cash components of earnings," Research in Accounting Regulation, Elsevier, vol. 25(2), pages 169-184.

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