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Selective disclosure and the role of Form 8‐K in the post‐Reg FD era

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  • Cristi Gleason
  • Zhejia Ling
  • Rong Zhao

Abstract

We investigate the impact of Form 8‐K filings on cross‐firm differences in analysts’ private or idiosyncratic information in the post‐Reg FD era. Using firms’ connections to the investment community to identify the likelihood of selective disclosure, we document differences in analysts’ idiosyncratic information arising from selective disclosure before 8‐K filings. While filings of 8‐Ks pursuant to Reg FD attenuate the link between connections and analysts’ idiosyncratic information, they do so only after selective disclosures have already resulted in some analysts having better private information. In addition, the connections continue to facilitate private information search after the filings of non‐Reg FD‐specific 8‐Ks.

Suggested Citation

  • Cristi Gleason & Zhejia Ling & Rong Zhao, 2020. "Selective disclosure and the role of Form 8‐K in the post‐Reg FD era," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(3-4), pages 365-396, March.
    • Handle: RePEc:bla:jbfnac:v:47:y:2020:i:3-4:p:365-396
    DOI: 10.1111/jbfa.12416
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    3. Jing He & Marlene A. Plumlee, 2020. "Measuring disclosure using 8-K filings," Review of Accounting Studies, Springer, vol. 25(3), pages 903-962, September.

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