We investigate how regulatory intensity influences the information environment of firms and shapes investor responses to earnings announcements. We argue that heightened regulatory oversight can impose forecasting difficulty and value uncertainty, thereby increasing the market’s reliance on earnings news. Consistent with this hypothesis, we find that firms with greater exposure to regulation exhibit stronger investor reactions to earnings announcements, as reflected in elevated abnormal trading volume and return volatility. The effect is more pronounced when alternative sources of information are limited, as in the case of firms with fewer analyst forecasts or younger firms, and when firms face greater fundamental constraints on information flow, as indicated by higher cash flow volatility, R&D intensity, and organisational complexity. Additionally, the effect is stronger when there are fewer informed traders, proxied by lower institutional holdings. To further substantiate the chilling effect, we find that firms with higher regulatory exposure engage in less voluntary disclosure, evidenced by fewer 8-K filings and more instances of “no answers” during earnings conference calls. We also observe increased investor information acquisition activity, measured by higher EDGAR download volumes around earnings announcements. Firms with higher regulatory exposure experience a greater uncertainty resolution during earnings announcement. Overall, our study sheds light on how an evolving regulatory environment shapes the information landscape and influences investors’ reactions to earnings news.