The FD Effect
- Topics:
- Investor Relations
- Tags:
- CFO Publishing Corp.,
- Earnings,
- Finance,
- Financial Accounting,
- Human Resources,
- Performance Management,
- Reg FD,
- Workforce Management
- Source:
- CFO Publishing
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Overview: Reg FD is perhaps the most closely watched and hotly debated new securities rule in years. A pet project of former SEC chairman Arthur Levitt, FD was a response to his concern that executives would freely tip off analysts about the company's earnings prospects without disclosing the news publicly. Levitt deemed the rule a success. There is no question that Reg FD has spurred companies to issue more press releases, file more 8Ks, and increase Web-casting of earnings calls in recent months. Finance chiefs and IR specialists have found FD to be strangely liberating. Like Diebold, many of the companies contacted by CFO have started to comment in their public disclosures on future quarters. Doing so permits executives to reiterate these projections in conversations with analysts and investors, yet avoid the verbal sparring about the accuracy of the Street's expectations. Information Updates. The advent of FD has spurred many companies to use the Internet to provide broader and more frequent disclosures that, in many instances, go beyond earnings guidance and include key non-financial performance metrics.
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Format: HTML | Date: Apr 2001 | Pages: 4
