An Empirical Study of Market Reaction to Earnings Forecasts Revision

In this paper, we study the market reaction to the earnings forecasts revision. We find that the forecasts of earnings revisions have significant information content and the market is more sensitive to the firms who forecast bad news originally which manifest more in the revision to the opposite dir...

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Bibliographic Details
Published in2010 International Conference on Internet Technology and Applications pp. 1 - 4
Main Authors Hu Zhi-ying, Li Chen-yu
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.08.2010
Subjects
Business
Educational institutions
Grasping
Stock markets
Training
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Summary:In this paper, we study the market reaction to the earnings forecasts revision. We find that the forecasts of earnings revisions have significant information content and the market is more sensitive to the firms who forecast bad news originally which manifest more in the revision to the opposite direction. Additionally, this view is attested by the CAR for different windows length.
ISBN:1424451426
9781424451425
DOI:10.1109/ITAPP.2010.5566646