报告：Earnings Guidance in Response to Increased Fundamental Analysis:
Evidence from a Natural Experiment
摘要：Recent studies have shown that the 2016 Tick Size Pilot Program was an exogenous shock that provided incentives for investors to engage in fundamental analysis (Ahmed et al., 2020; Lee and Watts, 2020). Building on these studies, we use this program as an exogenous shock to study the effect of fundamental analysis on voluntary disclosure. We find that treatment firms experienced a significant decrease in earnings guidance after the pilot program. This finding is consistent with the argument that increased fundamental analysis reduces information asymmetry between the firm and its investors, thus reducing the need to issue earnings guidance. Furthermore, we find that the decrease in earnings guidance was most concentrated in treatment firms that experienced increases in fundamental information acquisition and decreases in algorithmic trading. We also find that the negative effect of fundamental analysis on earnings guidance was more pronounced for firms with higher ex-ante information asymmetry or higher ex-ante proprietary costs. Taken together, our results suggest that an increase in fundamental analysis has a causal effect on firms’ earnings guidance.