The Interplay between Information Acquisition and Information Integration: Evidence from SEC 10-K/10-Q Filing Dates

We study the interplay between information acquisition and information integration by examining two aspects of information integration—information interpretation and information updating. Using EDGAR search volume following 10-K/10-Q filing dates as a proxy for information acquisition, we find that, as information search increases, information interpretation increases, but information updating does not change. When we divide total search volume into current search volume of newly filed reports and historical search volume of previously filed reports, we find that current search volume is associated with increased information interpretation and information updating, whereas historical search volume is associated with increased information interpretation and decreased information updating. We also find that filing characteristics and investor make-up play incrementally prominent roles in the association between information acquisition and information integration. Overall, we contribute to the literature by shedding light on a specific nature of interactivity between the two types of disclosure processing costs.