Do SEC reviews of corporate filings improve the information environment?

Wei QIANG

Research output: Other Conference ContributionsPresentation

Abstract

This paper examines how investors perceive the SEC review process for corporate filings. During the course of a review, the SEC staff can issue letters requesting that a company amend a previously-issued filing or include more information in its future filing. If SEC comment letters provide useful information to investors I should observe significant market reactions when the letters are disseminated to investors. Moreover, if the comments improve corporate disclosures, I should observe that investors respond more strongly to filings that were amended or revised as a result of the review process. I find the market reactions to the dissemination of SEC comment letters are small. The market reacts negatively to amended filings and the market reactions are more negative when the amendments are triggered by SEC comments, although these market reactions are quantitatively small. I also find that investors do not perceive future filings as more informative than the filings previously issued.
Original languageEnglish
Publication statusPublished - 9 Aug 2017
EventThe American Accounting Association Annual Meeting 2017 - American Accounting Association, San Diego, United States
Duration: 5 Aug 20179 Aug 2017
http://aaahq.org/Meetings/2017/Annual-Meeting

Conference

ConferenceThe American Accounting Association Annual Meeting 2017
CountryUnited States
CitySan Diego
Period5/08/179/08/17
Internet address

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