Differential effects of regulation FD on short- and long-term analyst forecasts
In this paper, we provide evidence that the quality of short-term analyst forecasts improved but the quality of long-term analyst forecasts deteriorated after the implementation of Regulation Fair Disclosure (FD). More specifically, our results show that the precision of the idiosyncratic information component of short-term forecasts improved in the post-FD period, whereas the precision of both the common and idiosyncratic information components of long-term forecasts declined. We attribute this result to the reduced disclosure of long-term, future-oriented information in the post-FD period. Thus our results support assertions by some analysts that FD has had a chilling effect on information that is relevant to long-term forecasts.
Year of publication: |
2009
|
---|---|
Authors: | Srinidhi, Bin ; Leung, Sidney ; Jaggi, Bikki |
Published in: |
Journal of Accounting and Public Policy. - Elsevier, ISSN 0278-4254. - Vol. 28.2009, 5, p. 401-418
|
Publisher: |
Elsevier |
Keywords: | Regulation FD Analyst forecast Idiosyncratic and common information components Long-term and short-term forecasts |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Differential effects of regulation FD on short- and long-term analyst forecasts
Srinidhi, Bin N., (2009)
-
Differential effects of regulation FD on short- and long-term analyst forecasts
Srinidhi, Bin, (2009)
-
Differential effects of regulation FD on short- and long-term analyst forecasts
Srinidhi, Bin, (2009)
- More ...