Abnormal Stock Performance of Late Filing Firms: Additional Investigation

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.