Investor Relations and Regulation FD

TABLE 4
Changes in Public Disclosures
Variable Pre-Reg FD Post-Reg FD Diff (p) Diff-in-Diff (p)
Number of MEF
IR 0.23 0.58 0.35 (0.00)
Control 0.10 0.21 0.11 (0.00)
Diff (p) 0.13 (0.00) 0.37 (0.00) 0.24 (0.00)
Any MEF
IR 0.20 0.41 0.21 (0.00)
Control 0.08 0.17 0.09 (0.00)
Diff (p) 0.12 (0.00) 0.24 (0.00) 0.12 (0.00)
The sample consists of 182 IR and 182 matched non-IR control firms that were matched on a one-to-one basis by
propensity score based on a “nearest neighbor” without replacement algorithm and a 0.25 caliper. An IR firm has a
professional IR presence continuously from 1995 to 2005. The non-IR control firm never has a professional IR
presence but was alive from 1995 to 2005 at least. The firms were matched in the fourth quarter1999 with the match
held through 2005. Regulation FD was implemented October 23, 2000. Pre-Reg FD is the mean level of the variable
per fiscal quarter for the period [Q41999, Q32000]. Post-Reg FD is the mean level of the variable per fiscal quarter
for the period [Q42000, Q42005]. Diff-in-Diff (p) is the difference between pre- and post-Reg FD for the IR firm
after the mean level of the quarterly variables have been adjusted relative to the matched non-IR control firm.
Number of MEF is the number of management earnings forecasts for any horizon issued during the fiscal quarter t.
Any MEF is an indicator variable equal to one if the company issued at least one management earnings forecast for
any horizon during the fiscal quarter t, and zero otherwise. The p-values are based on robust standard errors
clustered by firm.
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