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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27579
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| Title: | The New Form 8-K Disclosures |
| Authors: | Lerman, Alina
Livnat, Joshua |
| Issue Date: | Mar-2008 |
| Series/Report no.: | Joshua Livnat-08 |
| Abstract: | The Securities and Exchange Commission (SEC) has mandated new disclosure
requirements in Form 8-K, which became effective on August 23, 2004. The
SEC expanded the list of items that have to be reported and accelerated
the timeliness of these reports. This study examines the market
reactions to 8-Ks filed under the new SEC regime and investigates
whether periodic reports (10-K/Qs) are less informative under the new
8-K disclosure rules than previously. We observe that the newly required
8-K items constitute over half of all filings and that most firms
disclose the required items within the new shortened period (four
business days). We find that all disclosed items (old and new) are
associated with abnormal volume and return volatility around both the
event and the SEC filing dates, but also that some items have
significant return drifts after the SEC filings. We find that the
information content of periodic reports is not diminished by the more
expansive and timely 8-K disclosures under the new guidance, suggesting
that investors still use them to interpret the possible effects of
material events that occurred earlier. We also find that good news
reported in Forms 8-K generate greater market reactions on the event
date than bad news, likely because of earlier public disclosure of good
news by management. |
| URI: | http://hdl.handle.net/2451/27579 |
| Appears in Collections: | Accounting Working Papers
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