Does Regulation FD work? Evidence from analysts' reliance on public disclosure

► We examine how Regulation FD changed analysts' reliance on firms' public disclosure. ► Regulation FD increased analysts' dependence on firms' public disclosure. ► Regulation FD enhanced the role of public disclosure in improving the quality of analyst forecasts. ► Regulation FD levels the playing field between the analysts and individual investors. ► Regulation FD works by promoting “fair game” property of the market.