Title

Effect of Reg FD on information in analysts' rating changes

Authors

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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