The Increased Importance of Earnings Announcements After Regulation FD: Evidence From Revisions of Analysts' Forecasts and Pre-Announcements
- Source:
- New York University
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Overview: Regulation Fair Disclosure (Reg FD) was issued to prevent or mitigate the selective disclosure of material information to selected analysts and investors, beginning October 23, 2000. One expected effect of Reg FD is a reduction in private disclosure of material financial information to financial analysts before the earnings announcement. If analysts obtain less private information from management after Reg FD, they are more likely to depend on the subsequent public earnings disclosure in revising their forecasts. The results show a significant decrease in the time until analysts revise their forecasts after earnings announcements during the post-Reg FD period as compared to the period before Reg FD, and a significant increase in the absolute magnitude of these revisions.
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Format: PDF | Size: 166KB | Date: Jan 2004 | Pages: 46
