Diane Janvrin
Iowa State University
James Kurtenbach
Iowa State University
Abstract: Several recent archival studies have examined the impact of disclosure regulation on the information environment. This paper expands prior work by (1) exploring the impact of Regulation Fair Disclosure (FD) on difficult-to-measure reporting activities (e.g. phone calls from analysts, emails from analysts, one-on-one meetings with analysts, and analyst contacts with firm suppliers and employees) and (2) examining the perceptions of both information providers (financial executives) and information users (financial analysts). Results indicate that both providers and users perceive that FD has reduced selective disclosure. Users tend to have stronger perceptions about FD than do providers. Although narrow distribution reporting activities have decreased since FD, few firms have completely eliminated these activities. Finally, providers are using technological innovations to meet the requirements of FD. The study increases our understanding of how regulation to reduce selective disclosure may impact corporate disclosure policy.
Key Words: disclosure regulation; regulation fair disclosure (FD); selective disclosure; information environment; assurance services.
Data Availability: Please contact the authors.
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