The Relevance of Form 8-K Reports

The timeliness of and stock price reaction to a sample of Form 8-K reports filed in 1993 with the SEC is investigated. For the sample of 5,736 Form 8-Ks filed in 1993, over 26% were submitted beyond the statutory due date, with generally negative filings on auditor changes, director resignations, and bankruptcies or receiverships having noncompliance rates well over 30%. Larger firms, NYSE and ASE listed firms, and firms that issue securities within one year of the 8-K are more likely to file timely 8-K reports. An absolute stock price reaction of about 9% is found as early as one day before the 8-K event date but little response at the filing date. However, cross-sectional regression analysis reveals that only firms that file within 7 calendar days of the event date experience a significant market reaction at the filing date. These findings indicate that timely filing is the single most consistent determination of the 8-K's informativeness, which provides support to the SEC's efforts to shorten the 8-K filing period.