Impact of FINRA 2241

52 Pages Posted: 6 Jul 2023

See all articles by Rajeev R. Bhattacharya

Rajeev R. Bhattacharya

Washington Finance and Economics

Mahendra Gupta

Washington University, St. Louis

Date Written: June 25, 2023


We investigate the impact of FINRA 2241 on market quality. We find that FINRA 2241's impact on each of ten systematic and objective market quality metrics - the analyst behavior indices of diligence, objectivity, quality, and accuracy, based on Bhattacharya and Gupta (2023), and six measures of market efficiency based on Bhattacharya (2023) - was economically insignificant.

Keywords: FINRA 2241; Asymmetric Information; Earnings; Management Guidance; Analyst Forecasts; Diligence; Objectivity; Quality; Accuracy; Hausman Specification Test; Wald Test; Bayesian; Market Efficiency.

JEL Classification: K22; M41; G12; G14; G24; C23; C26.

Suggested Citation

Bhattacharya, Rajeev and Gupta, Mahendra R., Impact of FINRA 2241 (June 25, 2023). Available at SSRN: or

Rajeev Bhattacharya (Contact Author)

Washington Finance and Economics ( email )

United States


Mahendra R. Gupta

Washington University, St. Louis ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
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