Abnormal Stock Performance of Late Filing Firms: Additional Investigation
51 Pages Posted: 15 Jun 2008
Date Written: June 2006
Abstract
This paper examines whether the previously observed future under performance of the portfolio of the late 10-K filing firms exists in post EDGAR period and any reasons for the observed under-performance. I find that there is some evidence of under-performance of the portfolio of the late filing firms. I further find that in post-EDGAR period, the late filing firms have higher de-listing probabilities and that the observed under-performance is driven by the future negative stock performance of the sample of the de-listed late filing firms. I conclude that, in post-EDGAR period the market generally correctly values late filing firms.
Keywords: Late filings, 10-K, abnormal stock performance, restatement, delisting
JEL Classification: M41
Suggested Citation: Suggested Citation
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