How Missing SEC Filing Deadlines Affects a Company’s Stock Value

Investors, hedge funds, regulators, banks, and attorneys want to know: What really happens when a company misses a regulatory deadline? In a new paper, we offer theory and quantitative analysis of the consequences of missing U.S. Securities and Exchange Commission (SEC) regulatory deadlines for filing quarterly (Form 10-Q) and annual (Form 10-K) financial statements. Timely disclosure of financial statement information is a critical requirement for firms and well-functioning capital markets. Late filings delay disclosures that help investors make informed investment decisions and, as a result, increase information asymmetry and trading costs. Late filings may also trigger costly regulatory penalties and … Read more