Closed and Private Company Briefings: Justifiable or Unfair?

Abstract

Most listed Australian companies hold briefings for investors following major announcements. The information provided at these briefings can be easily and cheaply disseminated to all stakeholders using webcasting and teleconference calls. However, most Australian listed companies continue to provide briefing information to investors on an invitation-only basis. This article argues for regulation requiring open access for investors to major company briefings in Australia similar to Regulation Fair Disclosure in the United States. Empirical studies on company briefings generally suggest or infer that an open access policy enhances economic efficiency and market fairness through information asymmetry reductions.