Impact of FINRA 2241
52 Pages Posted: 6 Jul 2023
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: Suggested Citation