Does Regulation Fair Disclosure affect analysts’ forecast performance? The case of restructuring firms

Does Regulation Fair Disclosure affect analysts’ forecast performance? The case of... The main purpose of this paper is to investigate how the enactment of Regulation Fair Disclosure (Reg. FD) influences analysts’ forecast characteristics for restructuring firms. The Reg. FD requires all firms disseminate material information not only to some institutional investors and certain financial analysts, but to all market participants simultaneously. We expect that the regulatory effect of Reg. FD on financial analysts’ forecast performance would be pronounced because of uncertain earnings signals and information complexity produced by restructuring activities. Particularly, we examine how the enactment of Reg. FD affects the relationship between analysts’ earnings forecast attributes and the occurrence and magnitude of restructuring charges. Our general finding is that analysts’ forecast errors and forecast dispersion have declined in the post-FD period for restructuring firms. However, such an impact cannot be persistent with an increase in the relative magnitude of restructuring charges, the proxy for restructuring complexity. This study provides additional evidence that Reg. FD has limited private information, and attempts to provide all users with the same access to information within the context of firms reporting restructuring charges. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Quantitative Finance and Accounting Springer Journals

Does Regulation Fair Disclosure affect analysts’ forecast performance? The case of restructuring firms

Loading next page...
 
/lp/springer_journal/does-regulation-fair-disclosure-affect-analysts-forecast-performance-EUgMGKdjHZ
Publisher
Springer US
Copyright
Copyright © 2011 by Springer Science+Business Media, LLC
Subject
Finance; Corporate Finance; Accounting/Auditing; Econometrics; Operation Research/Decision Theory
ISSN
0924-865X
eISSN
1573-7179
D.O.I.
10.1007/s11156-011-0234-3
Publisher site
See Article on Publisher Site

References

  • A temporal analysis of earnings surprises: profits vs. losses
    Brown, L
  • Firm size and the information content of prices with respect to earnings
    Collins, DW; Kothari, SP; Rayburn, JD
  • The impact of regulation fair disclosure: trading costs and information asymmetry
    Eleswarapu, VR; Thompson, R; Venkataraman, K
  • Repeated accounting write-offs and the information content of earnings
    Elliott, JA; Hanna, JD
  • SEC regulation fair disclosure, information, and the cost of capital
    Gomes, A; Gorton, G; Madureira, L
  • The effect of repeat restructuring charges on analysts’ forecast revisions and accuracy
    Lin, B; Yang, R

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial