Form 10-K Definition
A Form 10-K summarizes in detail the company’s performance in a report for a five-year period. For public companies (or reporting companies), the report is sent to Securities and Exchange Commission (SEC) as part of the company’s on-gong reporting and disclosure requirements. It is more comprehensive than annual report, and bears important information for the new investors of the company.
A Little More on What is the 10-K Report
A 10-K report has been imposed as mandatory requirement for the companies by the Federal Government to help investors make informed decisions about their investments in the company.
The 10-K includes five sections:
- Overview of company
- Risk factors, present and future
- Last five years financial data including Management Discussion &Analysis
- Supplementary data and audited financial statements
- Signed letters of top tier management for data accuracy assurance
The 10-K report is pubic information available on various resources, including Investor Relations section of the company’s website.
References for the 10-K
Academic Research on Form 10-K
Extensions and violations of the statutory SEC Form 10–K filing requirements, Alford, A. W., Jones, J. J., & Zmijewski, M. E. (1994). Journal of Accounting and Economics, 17(1-2), 229-254. This paper provides an insight into firms that delay filing their 10-K. It explores the percent of firms that deliberately delay filing their 10-K and states the possible reasons for this development.
Got information? Investor response to Form 10–K and Form 10-Q EDGAR filings, Griffin, P. A. (2003). Review of Accounting Studies, 8(4), 433-460. This study examines the investor response to Form 10-K and 10-Q reports filed between 1996 and 2001. The samples comprise essentially the entire body of EDGAR filings, including the small business (SB) versions of each filing type. The study documents that the absolute value of excess return is reliably greater on the day of and on the one or two days immediately following the filing date.