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Amy Hutton (2002)
Determinants of Managerial Earnings Guidance Prior to Regulation Fair Disclosure and Bias in Analysts' Earnings ForecastsCapital Markets: Market Microstructure eJournal
(1998)
The importance of high quality accounting standards,
B Bushee (1998)
The influence of institutional investors on myopic R&D investment behaviorThe Accounting Review, 73
Afshad Irani, Irene Karamanou (2003)
Regulation Fair Disclosure, Analyst Following and Analyst Forecast DispersionAccounting Horizons, 17
(1997)
Firm-year observations with a negative return on equity are eliminated in the calculation
(2001)
This model is similar to the model introduced by Gebhardt et al
W Bailey, H Li, C Mao, R Zhong (2003)
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A Hutton (2005)
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Peter Easton, G. Sommers (2007)
Effect of Analysts' Optimism on Estimates of the Expected Rate of Return Implied By Earnings ForecastsFinancial Accounting eJournal
James Claus, Jacob Thomas (2001)
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D. Dhaliwal, Linda Krull, Oliver Li (2006)
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Utpal Bhattacharya, H. Daouk (2002)
The World Price of Insider TradingJournal of Financial Abstracts eJournal
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The big chill: Street feels effect of ‘fair disclosure’ rule – Regulation is altering the way analysts approach their jobs,
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The FASB and the capital markets, available at http://www.fasb.org/ articles&reports/Foster_FASBReport.pdf
Philippe Jorion, A. Liu, Charles Shi (2004)
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D Dhaliwal, L Krull, O Li, W Moser (2005)
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, “ Improving business reporting : Insights into enhancing voluntary disclosures
) and 0 otherwise. R F is the risk-free rate measured as the yield on the 10-year U.S. treasury bonds in each quarter
Frank Heflin, K. Subramanyam, Y. Zhang (2003)
Regulation FD and the Financial Information Environment: Early EvidenceThe Accounting Review, 78
B Bushee, D Matsumoto, G Miller (2004)
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E. Miller (1977)
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P Easton (2004)
PE ratios, PEG ratios, and estimating the implied expected rate of return on equity capitalThe Accounting Review, 79
Armando Gomes, Gary Gorton, Leonardo Madureira (2004)
SEC Regulation Fair Disclosure, Information, and the Cost of CapitalCorporate Law: Securities Law
James Ohlson, Beate Juettner-Nauroth (2000)
Expected EPS and EPS Growth as Determinants of Value By
(2003)
The FASB and the capital markets,” The FASB Report, available at http://www.fasb.org/articles&reports/Foster_FASBReport.pdf
B Sidhu, T Smith, R Whaley, R Willis (2008)
Regulation fair disclosure and the cost of adverse selectionJournal of Accounting Research, 46
Peter Easton (2003)
Pe Ratios, Peg Ratios, and Estimating the Implied Expected Rate of Return on Equity CapitalCapital Markets: Asset Pricing & Valuation eJournal
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The FASB and the capital markets
07) (-3.52) [2.03] (1.81) (0.34) [1.96] [0.98] [7.56] Residual Non-transient Inst
Dawn Matsumoto (1999)
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E. Fama, K. French (1997)
Industry costs of equityJournal of Financial Economics, 43
Brian Bushee, Dawn Matsumoto, Gregory Miller (2004)
Managerial and Investor Responses to Disclosure Regulation: The Case of Reg Fd and Conference CallsS&P Global Market Intelligence Research Paper Series
P Easton, G Sommers (2007)
Effect of analysts’ optimism on estimates of the expected rate of return implied by earnings forecastsJournal of Accounting Research, 45
Peter Easton (2005)
Use of Forecasts of Earnings to Estimate and Compare Cost of Capital Across RegimesS&P Global Market Intelligence Research Paper Series
Partha Mohanram, Shivaram Rajgopal (2009)
Is PIN Priced RiskJournal of Accounting and Economics, 47
Whitney Newey, K. West (1986)
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J. Duarte, Xi Han, J. Harford, Lance Young (2007)
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Maureen O'Hara, D. Easley (2001)
Information and the Cost of CapitalCorporate Finance: Valuation
Andreas Gintschel, S. Markov (2003)
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2003)—GM model The GM model is derived from the Ohlson and Juettner-Nauroth
B. Ke, K. Petroni (2004)
How Informed are Actively Trading Institutional Investors? Evidence from Their Trading Behavior Before a Break in a String of Consecutive Earnings IncreasesCapital Markets: Asset Pricing & Valuation
E Fama, K French (1992)
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S. Sunder (2002)
Investor Access to Conference Call Disclosures: Impact of Regulation Fair Disclosure on Information AsymmetryLSN: Securities Law: U.S. (Topic)
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2001)—CT model The CT model is similar to the GLS model, except that it assumes that the abnormal earnings
K. Venkataraman, Rex Thompson, Venkat Eleswarapu (2001)
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Linda Krull, Oliver Li (2005)
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W. Bailey, Haitao Li, Connie Mao, Rui Zhong (2003)
Regulation Fair Disclosure and Earnings Information: Market, Analyst, and Corporate ResponsesFox School of Business
02] [7.59] [4.54] [38.96] [45.25] [9.50] [6.15] [31.16] Residual Inst. -0.932 *** -0.582 *** -0.442 * -0.583 ** -0.766 *** -0
J Duarte, X Han, J Harford, L Young (2008)
Information asymmetry, information dissemination and the effect of regulation FD on the cost of capitalJournal of Financial Economics, 87
B Ke, K Petroni (2004)
How informed are actively trading institutional investors? Evidence from their trading behavior before a break in a string of consecutive earnings increasesJournal of Accounting Research, 42
The table is continued on the next page
(2009)
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
A Gomes, G Gorton, L Madureira (2007)
SEC regulation fair disclosure, information, and the cost of capitalJournal of Corporate Finance, 13
Christine Botosan (1997)
Disclosure level and the cost of equity capitalAccounting review: A quarterly journal of the American Accounting Association, 72
Richard Lambert, C. Leuz, Robert Verrecchia (2006)
Accounting Information, Disclosure, and the Cost of CapitalFinancial Accounting
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Outlaw selective disclosure? No, the more information the better
(2000)
Final rule: Selective disclosure and insider trading
James Ohlson, Beate Juettner-Nauroth (2005)
Expected EPS and EPS Growth as Determinantsof ValueReview of Accounting Studies, 10
E. Elton (1999)
Expected return, realized return, and asset pricing testsJournal of Finance, 54
Rodrigo Verdi (2005)
Information Environment and the Cost of Equity CapitalCapital Markets: Market Efficiency eJournal
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Differences of opinion and the cross - section of returns
Dan Gode, Partha Mohanram (2003)
Inferring the Cost of Capital Using the Ohlson–Juettner ModelReview of Accounting Studies, 8
P Easton (2006)
Use of forecasts of earnings to estimate and compare cost of capital across regimesJournal of Business Finance and Accounting, 33
Holger Daske (2006)
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The big chill: Street feels effect of ‘fair disclosure
D. Easley, Soeren Hvidkjaer, Maureen O'Hara (2002)
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J. O'Hanlon, A. Steele (2000)
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B Ke, K Petroni, Y Yu (2008)
The effect of regulation FD on transient institutional investors’ trading behaviorJournal of Accounting Research, 46
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Causes and consequences of cross-listed firms' voluntary adoption of U.S. securities laws: The case of Regulation Fair Disclosure. Working paper
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The Difference between Expected Rates of Return Implied by Analyst’s Earnings Forecasts and the Market Expectation,
A Gintschel, S Markov (2004)
The effectiveness of regulation FDJournal of Accounting and Economics, 37
E. Fama, K. French (1996)
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William Gebhardt, Charles Lee, B. Swaminathan (2000)
Toward an Implied Cost of CapitalCorporate Finance and Organizations eJournal
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Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, forthcoming
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Causes and consequences of cross-listed firms’ voluntary adoption of U.S. securities laws: The case of Regulation Fair Disclosure
Baljit Sidhu, Tom Smith, R. Whaley, R. Willis (2007)
Regulation Fair Disclosure and the Cost of Adverse SelectionRisk Management
W Gebhardt, C Lee, B Swaminathan (2001)
Toward an implied cost of capitalJournal of Accounting Research, 39
Luzi Hail, C. Leuz (2006)
International Differences in the Cost of Equity Capital: Do Legal Institutions and Securities Regulation Matter?: international cost of equity capitalJournal of Accounting Research, 44
D Easley, M O’Hara (2004)
Information and the cost of capitalJournal of Finance, 59
B. Ke, K. Petroni, Yong Yu (2008)
The Effect of Regulation Fd on Transient Institutional Investors' Trading BehaviorCorporate Law: Securities Law eJournal
L Hail, C Leuz (2006)
International differences in the cost of capital: Do legal institutions and securities regulation matter?Journal of Accounting Research, 44
(2000)
All partition variables are measured as of the end
John Hughes, Jing Liu, Jun Liu (2007)
Information Asymmetry, Diversification, and Cost of CapitalThe Accounting Review, 82
(2001)
Written statement concerning Regulation Fair Disclosure
H Daske (2006)
Economic benefits of adopting IFRS or US-GAAP—have the expected cost of equity capital really decreased?Journal of Business Finance and Accounting, 33
W. Guay, S. Kothari, Susan Shu (2011)
Properties of implied cost of capital using analysts’ forecastsAustralian Journal of Management, 36
(2001)
Improving business reporting: Insights into enhancing voluntary disclosures, the Steering Committee on Business Reporting Research Project
D Dhaliwal, L Krull, O Li (2007)
Did the 2003 tax act reduce the cost of equity capital?Journal of Accounting and Economics, 43
Peter Easton, Gary Taylor, Pervin Shroff, Theodore Sougiannis (2002)
Using forecasts of earnings to simultaneously estimate growth and the rate of return on equity investmentJournal of Accounting Research, 40
We examine the effect of Regulation Fair Disclosure (Reg FD) on the cost of equity capital. We find some evidence that (1) the cost of capital declines in the post-Reg FD period relative to the pre-Reg FD period, on average, for a broad cross-section of US firms, (2) the decrease in the cost of capital post Reg FD is mainly for medium and large firms but is insignificant for small firms, and (3) the decrease in the cost of capital post Reg FD is systematically related to firm characteristics indicative of selective disclosure before Reg FD. In contrast, we find little evidence of a decrease in the cost of capital for American Depositary Receipts and US-listed foreign firms, which are legally exempt from Reg FD. Overall, our findings do not support a conclusion in recent studies that the cost of capital has increased post Reg FD and, if anything, suggest the opposite.
Review of Accounting Studies – Springer Journals
Published: Oct 17, 2009
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