Regulation Fd and the Financial Information Environment

45 Pages Posted: 15 Jul 2001

See all articles by Frank Heflin

Frank Heflin

University of Georgia - J.M. Tull School of Accounting

K.R. Subramanyam

University of Southern California - Leventhal School of Accounting

Yuan Zhang

University of Texas at Dallas

Date Written: Undated

Abstract

We examine whether Regulation FD is associated with changes in the information environment prior to earnings announcements. After implementation of Regulation FD we find (a) lower return volatility around earnings announcements; (b) some improvement in the speed with which pre earnings announcement price converges to its post announcement level; (c) no reliable evidence of change in various aspects of analysts forecast bias, accuracy, and dispersion; and (d) an increase in the quantity of firms' voluntary forward looking disclosures. Overall, we are unable to find a deterioration in the information environment prior to earnings announcements associated with the implementation of Regulation FD.

JEL Classification: M41, G18, G29

Suggested Citation

Heflin, Frank and Subramanyam, K.R. and Zhang, Yuan, Regulation Fd and the Financial Information Environment (Undated). Available at SSRN: https://ssrn.com/abstract=276768 or http://dx.doi.org/10.2139/ssrn.276768

Frank Heflin

University of Georgia - J.M. Tull School of Accounting ( email )

Athens, GA 30602
United States
706-542-1616 (Phone)
706-542-3630 (Fax)

K.R. Subramanyam (Contact Author)

University of Southern California - Leventhal School of Accounting ( email )

Los Angeles, CA 90089-0441
United States
213-740-5017 (Phone)
213-747-2815 (Fax)

Yuan Zhang

University of Texas at Dallas ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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