Journal Article10.2308/ACCH.2003.17.1.15
Regulation Fair Disclosure, Analyst Following, and Analyst Forecast Dispersion
Afshad J. Irani,Irene Karamanou +1 more
202
TL;DR: In this article, the effect of Regulation Fair Disclosure (FD) on the quantity and quality of firm-specific information released to the market by comparing analyst forecast data from pre-FD to post-FD time periods is presented.
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Abstract: This paper presents preliminary evidence of the effect of Regulation Fair Disclosure (FD) on the quantity and quality of firm‐specific information released to the market by comparing analyst forecast data from pre‐FD to post‐FD time periods. By prohibiting selective disclosure of material information to privileged individuals, the Securities and Exchange Commission intends to provide a level playing field to all investors. However, opponents argue that FD has a negative impact by decreasing the quantity and quality of publicly available information. Consistent with this argument, we document a decrease in analyst following and an increase in forecast dispersion following the passage of FD.
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Citations
The effect of institutional ownership on firm transparency and information production
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TL;DR: The authors examined the effects of institutional ownership on firms' information and trading environments using the annual Russell 1000/2000 index reconstitution and found that higher institutional ownership is associated with greater management disclosure, analyst following, and liquidity, resulting in lower information asymmetry.
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Management Earnings Forecasts: A Review and Framework
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The Effect of Institutional Ownership on Firm Transparency and Information Production
Audra L. Boone,Joshua T. White +1 more
TL;DR: In this paper, the authors examine the effects of institutional ownership on firms' information and trading environments using the annual Russell 1000/2000 index reconstitution and find that higher institutional ownership is associated with greater management disclosure, analyst following, and liquidity, resulting in lower information asymmetry.
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Informational effects of regulation FD: evidence from rating agencies
TL;DR: In this article, the authors examined the effect of credit rating changes on stock prices and found that the informational effect of downgrades and upgrades is much greater in the post-FD period.
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Management Earnings Forecasts: A Review and Framework
TL;DR: In this paper, the authors provide a framework in which to view management earnings forecasts as having three components - antecedents, characteristics, and consequences that roughly correspond to the timeline associated with an earnings forecast.
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References
•Posted Content
Corporate Disclosure Policy and Analyst Behavior
Mark H. Lang,Russell J. Lundholm +1 more
TL;DR: In this article, the authors examine the relation between the disclosure practices of firms, the number of analysts following each firm, and properties of the analysts' earnings forecasts and find that firms with more informative disclosure policies have a larger analyst following, more accurate analyst earnings forecasts, less dispersion among individual analyst forecasts and less volatility in forecast revisions.
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Firm characteristics and analyst following
TL;DR: This paper examined the major determinants of the number of analysts following a firm and proposed a simple model of analyst following and several firm characteristics are suggested that are likely to influence the extent of a firm's analyst following by either affecting the aggregate demand for or supply of analyst services or both for the firm.
1.7K
The Walk-down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives*
TL;DR: In this paper, the authors examine whether the walkdown to beatable targets is associated with managerial incentives to sell stock after earnings announcements on the firm's behalf or from their personal accounts (through option exercises and stock sales).
879
•Posted Content
Using Analysts' Forecasts to Measure Properties of Analysts' Information Environment
TL;DR: A model that relates properties of the analysts' information environment to the properties of their forecasts and shows that the quality of common and private information available to analysts can be measured using these same observable variables.
758