By James Langton
(November 28 – 17:45 ET) – A recent survey by the Financial Executives Institute found mixed reactions to the controversial rule put in place the Securities and Exchange Commission against selective disclosure, Regulation FD.
The survey of 43 CFO respondents found that 41.5% believe the new rule is having a “chilling” effect on the amount and flow of information about their company to the marketplace, 36.6% said there was no chilling effect, while 22% said it was too early to tell.
However, fully 78% of respondents said the final rules will cause their company to change practices or behave differently with the analyst and investor communities; 7.3% said their practices wouldn’t change, and 14.6% didn’t know.
The rule is having minimal impact on broker-sponsored analyst meetings, with just 12.5% of respondents saying they’ll significantly cut back or abandon such meetings. Another 2.7% are discontinuing conference calls, while 40.5% will now open their calls to the public.
Survey finds mixed reaction to Regulation FD 28/11/00
CFOs agree selective disclosure rules will change company practices
- By: IE Staff
- November 28, 2000 November 28, 2000
- 17:45