TY - JOUR
T1 - Enforcement and disclosure under regulation fair disclosure
T2 - An empirical analysis
AU - Griffin, Paul A.
AU - Lont, David H.
AU - Segal, Benjamin
PY - 2011/12
Y1 - 2011/12
N2 - While Regulation Fair Disclosure (FD) was designed to benefit investors by curbing the selective disclosure of material non-public information to 'covered' investors, such as analysts and institutional investors, it can also impose costs. This paper finds that FD levies three kinds of enforcement and disclosure costs. First, investors cannot recover as part of an SEC enforcement action the gains to covered investors from their alleged use of the non-public information. Second, investors lose because the market responds negatively to an SEC enforcement announcement. Third, investors suffer because some companies post their FD filings well after the due date, without earlier public disclosure.
AB - While Regulation Fair Disclosure (FD) was designed to benefit investors by curbing the selective disclosure of material non-public information to 'covered' investors, such as analysts and institutional investors, it can also impose costs. This paper finds that FD levies three kinds of enforcement and disclosure costs. First, investors cannot recover as part of an SEC enforcement action the gains to covered investors from their alleged use of the non-public information. Second, investors lose because the market responds negatively to an SEC enforcement announcement. Third, investors suffer because some companies post their FD filings well after the due date, without earlier public disclosure.
KW - Enforcement action
KW - Event study
KW - Late SEC filing
KW - Regulation fair disclosure
KW - Untimely fair disclosure
UR - http://www.scopus.com/inward/record.url?scp=80155126032&partnerID=8YFLogxK
U2 - 10.1111/j.1467-629X.2011.00446.x
DO - 10.1111/j.1467-629X.2011.00446.x
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AN - SCOPUS:80155126032
SN - 0810-5391
VL - 51
SP - 947
EP - 983
JO - Accounting and Finance
JF - Accounting and Finance
IS - 4
ER -