Who Is Afraid of Reg FD? The Behavior and Performance of Sell‐Side Analysts Following the SEC’s Fair Disclosure Rules*

Agrawal, Anup; Chadha, Sahiba; Chen, Mark A.

doi:10.1086/508000

Cited by 208 publications

(113 citation statements)

References 24 publications

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“…In contrast to results presented by Agrawal and Chadha (2002), Findlay and Mathew (2002), and Heflin et al (2003) find no change in the bias, accuracy, or dispersion of analysts' forecasts.…”

Section: Regulation Fair Disclosurecontrasting

confidence: 87%

“…If RFD is effective in eliminating selective disclosure practices, those analysts that relied on this guidance to form their earnings forecasts would be subsequently "disadvantaged". Agrawal and Chadha (2002) examine earnings' forecast accuracy of sell-side analysts in the first three quarters following the implementation of RFD. They find that earnings forecasts are less accurate and more dispersed without selective disclosure.…”

Section: Regulation Fair Disclosurementioning

confidence: 99%

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Are foreign issuers complying with Regulation Fair Disclosure?

Mathew

Michayluk

Kofman

2007

Journal of International Financial Markets, Institutions and Mo

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Section: Regulation Fair Disclosurecontrasting

confidence: 87%

Section: Regulation Fair Disclosurementioning

confidence: 99%

Are foreign issuers complying with Regulation Fair Disclosure?

Mathew

Michayluk

Kofman

2007

Journal of International Financial Markets, Institutions and Mo

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“…Footnote 22 continued reduced the amount of private information selectively disclosed to certain analysts (Agrawal et al 2006;Chen and Matsumoto 2006;Francis et al 2006). 23 The SEC implemented Reg FD on October 23, 2000.…”

Section: Reg Fd Testmentioning

confidence: 99%

Analysts’ accrual-related over-optimism: do analyst characteristics play a role?

Drake

Myers

2009

Rev Account Stud

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Bradshaw et al. (J Acc Res 39:45-74, 2001) find that analyst forecast over-optimism is greater for firms with high accruals. This ''accrual-related overoptimism'' is generally interpreted as evidence that analyst forecasts do not fully incorporate predictable earnings reversals associated with high accruals. We investigate whether analyst experience, access to resources (brokerage size), and portfolio complexity moderate the relation between over-optimistic forecasts and high accruals. We demonstrate the robustness of accrual-related over-optimism to controls for cash flow and prior forecast errors. We find that accrual-related overoptimism is lower for analysts with greater general experience and for analysts following fewer firms but find only limited evidence of lower accrual-related overoptimism for analysts from larger brokerages and for analysts following fewer industries.

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“…It has been shown that the probability of restatement is significantly lower in companies whose boards or audit committees include an independent director with financial expertise (Agrawal and Chadha, 2003). Klein (2003) finds that financial expertise reduces earnings management, and Defond et al (2004) find that the market positively values the appointment of financial experts to the board of directors.…”

Section: Governance Structurementioning

confidence: 99%