Title

Effect Of Reg Fd On Information In Analysts' Rating Changes

Abstract

A rich literature examines the effects of analysts' recommendations on stock prices, and literature is developing on the effect of Regulation Fair Disclosure 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. © 2006, CFA Institute.

Publication Date

5-1-2006

Publication Title

Financial Analysts Journal

Volume

62

Issue

3

Number of Pages

44-57

Document Type

Review

Personal Identifier

scopus

DOI Link

https://doi.org/10.2469/faj.v62.n3.4156

Socpus ID

33845705940 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/33845705940

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