Effect of Reg FD on information in analysts' rating changes

    Authors

    E. J. Ferreira;S. D. Smith

    Comments

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    Abbreviated Journal Title

    Financ. Anal. J.

    Keywords

    Business, Finance

    Abstract

    A rich literature examines the effects of analysts' recommendations on stock prices, and literature is developing on the effect of Regulation Fair Diclosure on the information associated with corporate earnings forecasts and announcements. This study examines the effect of Reg FD on the information content of analysts' rating changes. Based on recommendations associated with a random sample of S&P 500 Index stocks, the major finding is that investors have been responding to analysts' recommendations in the same way since Reg FD as they did before implementation of Reg FD. In addition, the results suggest that Reg FD does not require that practitioners change the way they view the analyst recommendation process.

    Journal Title

    Financial Analysts Journal

    Volume

    62

    Issue/Number

    3

    Publication Date

    1-1-2006

    Document Type

    Article

    Language

    English

    First Page

    44

    Last Page

    57

    WOS Identifier

    WOS:000238034400006

    ISSN

    0015-198X

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