Download or read book Financial Reporting Complexity and Investor Underreaction to 10-K Information written by Haifeng You and published by . This book was released on 2012 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the immediate and delayed market response to SEC EDGAR 10-K filings. Unusual trading volumes and stock price movements are documented during the days around the 10-K filing dates. The abnormal price movements are positively associated with future accounting profitability, indicating that 10-K filings contain useful information about future firm performance. In addition, investors' reaction to 10-K information seems sluggish, as evidenced by the stock price drift during the twelve month period after 10-K filing. We find that investors' under-reaction tends to be stronger for firms with more complex 10-K filings.