Consequences of Prescribed Disclosure Timeliness: Evidence from Acceleration of the Form 8-K Filing Deadline

• 成果类型: Article
• 署名作者: Watkins, Jessica
• 署名单位: University of Notre Dame
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2019-0577
• 发表日期: 2022
• 页码: 429-463
• 关键词: TRADING VOLUME; information asymmetry; public information; announcement; returns; cost

摘要

I investigate capital market consequences of an increase in prescribed timeliness of firms' mandatory disclosure of material events. Specifically, I examine an SEC regulatory change that accelerates the Form 8-K filing deadline and classifies 8-Ks as likely to be constrained or unconstrained by the increase in prescribed timeliness. After the regulatory change, firms filing constrained 8-Ks exhibit increases in information asymmetry between investors and investor disagreement at the 8-K filing date relative to firms filing unconstrained 8-Ks. Moreover, the relative increases in information asymmetry and investor disagreement for firms filing constrained 8-Ks appear to be attributable to a decline in the length of and quantitative information included in 8-K disclosures. My findings shed light on the costs of a prescriptive approach to enhanced disclosure timeliness of ongoing disclosure.