Differential effects of regulation FD on short- and long-term analyst forecasts
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 401-418 |
| Journal / Publication | Journal of Accounting and Public Policy |
| Volume | 28 |
| Issue number | 5 |
| Publication status | Published - Sep 2009 |
Link(s)
Abstract
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. © 2009 Elsevier Inc. All rights reserved.
Research Area(s)
- Analyst forecast, Idiosyncratic and common information components, Long-term and short-term forecasts, Regulation FD
Citation Format(s)
Differential effects of regulation FD on short- and long-term analyst forecasts. / Srinidhi, Bin; Leung, Sidney; Jaggi, Bikki.
In: Journal of Accounting and Public Policy, Vol. 28, No. 5, 09.2009, p. 401-418.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
