TY - JOUR
T1 - Re-examining the effects of regulation fair disclosure using foreign listed firms to control for concurrent shocks
AU - Francis, Jennifer
AU - Nanda, Dhananjay
AU - Wang, Xin
N1 - Funding Information:
We gratefully acknowledge financial support from Fuqua School of Business, Duke University. We have benefited from helpful comments from Stanimir Markov (referee), S.P. Kothari (editor), Linda Bamber, Larry Brown, Michael Mikhail, Per Olsson, Katherine Schipper, Mohan Venkatachalam, Richard Willis, and Amy Zang, and workshop participants at Duke University, the 2004 SESARC conference at Georgia State University, and the University of Technology, Sydney. Analyst forecast data are from Zacks Investment Research database.
PY - 2006/9
Y1 - 2006/9
N2 - We re-examine the effects of regulation fair disclosure (Reg FD) using ADRs (who are exempt from Reg FD) to control for confounding events which affected all traded firms. Tests based on public information metrics (returns volatility, informational efficiency and trading volume) and on analyst information metrics (forecast dispersion and accuracy) suggest that Reg FD did not uniquely affect the US information environment. However, analyst report informativeness declined for US firms relative to ADR firms, providing evidence consistent with Reg FD achieving one of its objectives-reducing private information flows to analysts.
AB - We re-examine the effects of regulation fair disclosure (Reg FD) using ADRs (who are exempt from Reg FD) to control for confounding events which affected all traded firms. Tests based on public information metrics (returns volatility, informational efficiency and trading volume) and on analyst information metrics (forecast dispersion and accuracy) suggest that Reg FD did not uniquely affect the US information environment. However, analyst report informativeness declined for US firms relative to ADR firms, providing evidence consistent with Reg FD achieving one of its objectives-reducing private information flows to analysts.
KW - Foreign-listed firms
KW - Information environment
KW - Reg FD
UR - http://www.scopus.com/inward/record.url?scp=33746511010&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33746511010&partnerID=8YFLogxK
U2 - 10.1016/j.jacceco.2006.03.002
DO - 10.1016/j.jacceco.2006.03.002
M3 - Article
AN - SCOPUS:33746511010
VL - 41
SP - 271
EP - 292
JO - Journal of Accounting and Economics
JF - Journal of Accounting and Economics
SN - 0165-4101
IS - 3
ER -