The Effectiveness of Regulation Fd

Emory University Working Paper

47 Pages Posted: 8 Aug 2002

See all articles by Andreas Gintschel

Andreas Gintschel


Stanimir Markov

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: May 5, 2003


We examine whether Regulation FD has reduced the informativeness of analysts' information outputs. For a sample of financial analysts' earnings forecasts and recommendations released between October 23, 1999 and October 23, 2001, we show that in the post-Regulation period the absolute price impact of information disseminated by financial analysts is lower by 32%. We also show that the drop in price impact varies systematically with brokerage house and stock characteristics related to the level of selective disclosure prior to Reg FD. Based on the time-series and cross-sectional evidence we conclude Regulation FD has been effective in curtailing selective disclosure.

Keywords: capital markets, financial analysts, government policy and regulation

JEL Classification: G14, G28, G29, M41

Suggested Citation

Gintschel, Andreas and Markov, Stanimir, The Effectiveness of Regulation Fd (May 5, 2003). Emory University Working Paper, Available at SSRN: or

Andreas Gintschel

JPMorgan ( email )

Junghofstrasse 14
Frankfurt, 60311
+49 69 7124 2195 (Phone)

Stanimir Markov (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States
972 883 5166 (Phone)

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