Abstract
We analyze market reactions to 8,006 non-reliance disclosures filed under Item 4.02 in SEC Form 8-K filings (2004-2023). These disclosures result in cumulative abnormal returns of-2.6% to-5.4%, with revenue recognition errors triggering 114% more severe reactions than net income errors. Disclosures expressing uncertainty about the impact of identified errors face three times harsher market responses than those with clearly stated effects, while SEC-identified issues do not amplify negative price reactions. As Item 4.02 disclosures precede financial restatements, they serve as a significant and robust early risk signal for investors and stakeholders.
Keywords: non-reliance disclosures, SEC form 8-K filings, item 4.02, event study, market reactions
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