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Does Regulation Fair Disclosure Reduce the Information Quality of Managerial Guidance?


  • We wish to thank the editor, Bonnie Van Ness, and an anonymous reviewer for their valuable comments and suggestions.

*College of Business, Finance, Florida Atlantic University, 777 Glades Road, Boca Raton, FL 33431; Phone: (561) 297-3493; Fax: (561) 297-2956; E-mail:


We examine an effect of Regulation Fair Disclosure (Reg FD) on voluntary public managerial guidance information quality. Results suggest that the information quality of public guidance has not deteriorated after Reg FD. We also examine separately the effect of Reg FD on information efficiency before earnings releases for firms that provide public managerial guidance and those that do not. We find that when we control for the impact of Reg FD on firm characteristics, information efficiency deteriorates for firms that do not provide public guidance and for new guiders, while it does not change for firms that continue issuing public guidance after Reg FD.