Earnings management, Jones model, Import relief, Discretionary accruals

We present evidence that 20 percent of the 10-Ks in our sample are filed with the SEC after the 90-day statutory due date. Firms that delay filing their 10-K are not a random sample of firms; up to 25 (10) percent of the firms experiencing unfavorable (favorable) economic events delay their 10-K. Firms that delay their 10-K are, on average, small, have negative accounting rates of return, negative earnings changes, low liquidity, and high financial leverage; they also experience negative market- adjusted stock returns.

Andrew Alford, Jennifer Jones, Richard Leftwich, Mark Zmijewski, The Relative Informativeness of Accounting Disclosures in Different Countries, Journal of Accounting Research, Vol. 31, Studies on International Accounting (1993), pp. 183-223