IMPACT OF USING XBRL IN 10K AND 10Q FILINGS WITH THE SEC: EVIDENCE OF INCREASED TIMELINESS IN REPORTING

Ryan J. Weissmueller
Gary G. Johnson
Southeast Missouri State University
ABSTRACT
This study focuses on the timeliness of 10K and 10Q reporting to the Securities and Exchange Commission (SEC) by large public companies. Results show that 65.2% of sampled companies decreased the number of days to file their annual 10-K reports when using eXtensible Business Reporting Language (XBRL). For these companies, the average number of days to file prior to implementing XBRL was 58.4. After implementing XBRL, the number of days was 55.1 days, representing an average decrease of 3.3 days with a range of a 0.3 day reduction to a 14.4 day reduction. Many companies reporting a reduction in the average days to file their 10-Ks also reduced the time to file their quarterly 10-Qs. Sixty-one percent (60.9%) of sampled companies shortened the length of time to file their 10-Qs. These companies averaged 34.7 days prior to the XBRL requirement and 32.6 days after the requirement – an average decrease of 2.2 days. Paired sample tests performed on the means of the pre and post filing times for all companies in the sample show a statistically significant reduction in time for the 10-K reports, but no significant change in time in reporting for the 10-Q’s.