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Reg FD Beneficial, Say Tech Leaders.

Leaders in nearly 80 percent of publicly held United States technology companies surveyed see Regulation FD as having a positive or neutral impact on their businesses. The survey, conducted by PricewaterhouseCoopers' Technology Barometer, interviewed CFOs, controllers, treasurers and VPs of investor relations from 164 publicly held U.S. businesses with revenues over $1 billion and 41 CEOs of smaller businesses.

Regulation Fair Disclosure, known as Reg FD, was enacted late last year by the SEC. It requires public companies to disclose all material information to the general public at the same time they disclose it to analysts and other selected parties.

Among the survey findings:

* A greater number of technology companies are disclosing more information -- and tending to do so sooner;

* Few technology companies have incurred significant compliance costs; and

* Only a small percentage believes Reg F.D affected their stock price.

Critics of Reg FD argued it would cause companies to disclose less information; that the cost of compliance would be unreasonably high; and that it would lower stock prices. Robert Eccles, a PwC partner and co-author of The ValueReporting Revolution; Moving Beyond The Earnings Game, said, "We believe Regulation FD has had a positive impact on the market by making more and better information available to the investing public at large."
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Title Annotation:Regulation Fair Disclosure
Author:Heffes, Ellen M.
Publication:Financial Executive
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2001
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