共查询到10条相似文献,搜索用时 93 毫秒
1.
Our study analyzes market reaction to the entire content of a large sample of analysts’ reports from the period 2002 to 2004
for the German market. In particular, we explore whether the three summary measures in the reports, i.e., recommendation revisions,
earnings forecast revisions, and target price forecast revisions are acknowledged by the market. Additionally, we investigate
if stated justifications in the written text of analysts’ reports contain information value beyond the three summary measures.
We find that earnings forecast revisions and target price forecast revisions contain valuable information, both unconditionally
and conditional on the rest of the information in the report. Our findings also reveal that justifications made by analysts
are of high salience to market participants. These justifications provide valuable information, both unconditionally and conditional
on all other types of information in a report. Our findings also suggest that business ties between banks and the analyzed
companies do not affect market reaction to dissemination of an analysts’ report.
相似文献
Andreas Walter (Corresponding author)Email: |
2.
Li-Chin Jennifer Ho Chao-Shin Liu Thomas F. Schaefer 《Review of Quantitative Finance and Accounting》2007,28(3):307-326
This study examines whether reported values for firms’ research and development (R&D) affect analysts’ annual earnings forecast
revisions following quarterly earnings announcements. Because R&D introduces uncertainty into earnings forecasts, analysts
may benefit from additional information searches in an effort to increase forecast accuracy. Also, accounting standards mandate
an immediate expensing of R&D, in essence projecting a zero value for the R&D. To the extent that R&D will produce future
payoffs, the expense treatment reduces the informativeness of reported earnings for forecasting future earnings. Thus, the
marginal benefit of analysts’ efforts to produce more information may increase with the magnitude of the R&D component of
earnings announcements and trigger additional forecast revisions. Alternatively, if the cost of information searches exceeds
the benefit, analysts’ forecast revisions may decrease.
Our results show a positive relation between R&D expenses and analysts’ forecast revision activity. We also find a positive
and significant association between the level of R&D expenses and the magnitude of analysts’ forecast revisions following
quarterly announcements. These results point to a greater amount of analyst scrutiny when reported earnings are accompanied
by high levels of R&D expenses.
相似文献
Li-Chin Jennifer HoEmail: |
3.
We provide an alternative explanation for the previous finding of analysts’ overreaction to extreme good news in earnings.
We show that such finding could be a result of analysts’ rational behavior in the face of high earnings uncertainty rather
than their cognitive bias. Extreme earnings performance tends to be associated with higher earnings uncertainty that generally
leads to more forecast optimism. Once this effect is accounted for, the univariate result of analysts’ overreaction to extreme
good news in earnings is subsumed, leaving only their underreaction in general.
相似文献
Jian XueEmail: |
4.
We investigate if the SEC’s recently mandated disclosure of fees for audit and nonaudit services paid by firms to their incumbent auditors affected the market’s perception of auditor independence and earnings quality. Following the initial fee disclosures in 2001, we find that the market valuation of quarterly earnings surprises (earnings response coefficient) was significantly lower for firms with high levels of nonaudit fees than for firms with low levels of such fees. In contrast, in the year prior to the new fee disclosures, there was no reduction in earnings response coefficients for firms that subsequently reported high nonaudit fees. Our evidence suggests that mandated fee disclosures provided new information that was viewed by the market as relevant to appraising auditor independence and earnings quality.
相似文献
Bin KeEmail: |
5.
Howard W. H. Chan Robert W. Faff Philip Gharghori Yew Kee Ho 《Review of Quantitative Finance and Accounting》2007,29(1):25-51
The Australian accounting environment provides an ideal setting for examining the impact of different accounting treatments
of firms’ R&D activities on their subsequent returns. Unlike US firms, which can only expense R&D, Australian GAAP permits
firms to either expense or capitalize their R&D expenditure. We examine separately the market impact of the R&D intensity
of all R&D active firms, ‘capitalizers’ and ‘expensers’. Our results suggest that firms with higher R&D intensity perform
better, regardless of the accounting method used, consistent with the resource-based view of the firm. We also find some evidence
that firms which expense R&D outperform those which capitalize R&D after controlling for R&D intensity.
相似文献
Yew Kee HoEmail: |
6.
Chaur-Shiuh Young Liu-Ching Tsai Hui-Wen Hsu 《Review of Quantitative Finance and Accounting》2008,30(3):297-314
This study examines the relation between controlling shareholders’ excess board seats control and financial restatements.
An analysis of a sample comprising 106 Taiwanese listed firms (53 restating firms vs. 53 non-restating control firms) shows
that financial restatements are more likely to occur when there is a greater divergence between controlling shareholders’
board seats control rights and ownership rights. We also find that the excess board seats control of controlling shareholders
is positively associated with the materiality and pervasiveness of financial restatements. Overall, these results suggest
that the entrenchment incentive from controlling shareholders’ excess control motivates firms to adopt aggressive accounting
policies.
相似文献
Hui-Wen HsuEmail: |
7.
Ruey S. Tsay Yi-Mien Lin Hsiao-Wen Wang 《Review of Quantitative Finance and Accounting》2008,31(4):331-358
The paper uses Ohlson (Contemp Account Res 11:661–687, 1995) and compares the relative predictability of the proposed simultaneous
model for contemporaneous stock price with a traditional single equation model used by the previous studies. The paper also
explores how residual income and value-relevant information affect firms’ equity price. The main results of the paper suggest
that the predictive ability and estimation efficiency of the simultaneous models in explaining contemporaneous stock prices
are better than those of the traditional single models. Moreover, investors will use the value-relevant information beyond
accounting earnings, namely analysts’ earnings forecasts, bankruptcy cost and agency cost, in equity valuation to make decision.
Note particularly, the higher the bankruptcy or agency cost is, the more important the role it plays in equity valuation and,
on average, the higher the accuracy of price prediction is.
相似文献
Hsiao-Wen WangEmail: |
8.
We empirically examine how governance structure affects the design of executive compensation contracts and in particular, the implicit weights of firm performance measures in CEO’s compensation. We find that compensation contracts in firms with higher takeover protection and where the CEO has more influence on governance decisions put more weight on accounting-based measures of performance (return on assets) compared to stock-based performance measures (market returns). In additional tests, we further find that CEO compensation in these firms has lower variance and a higher proportion of cash (versus stock-based) compensation. We further find that CEOs’ incentives (measured as changes in CEO annual wealth which includes expected changes in the value of the CEO’s equity holdings in addition to yearly compensation) do not vary across governance structures. These findings are consistent with CEOs in firms with high takeover protection and where they have more influence on governance negotiating different contracts.
相似文献
Fernando PenalvaEmail: Phone: +34-93-2534200 |
9.
Seung Hun Han Yoon S. Shin Walter Reinhart William T. Moore 《Journal of Financial Services Research》2009,35(2):141-166
We examine stock market reactions to corporate credit rating changes in 26 emerging market countries included in the Morgan
Stanley Capital International (MSCI) Emerging Market Index. We hypothesize and test the notion that emerging market firms
in the American Depository Receipts (ADRs) markets are more likely to purchase ratings from the Big Two (Moody’s and S&P),
and that they react more strongly to the announcements of corporate rating changes by Moody’s or S&P than to those of raters
in local markets. We compare the effect of credit rating changes of the Big Two in two emerging stock markets: local markets
(local currencies) and ADR markets (U.S. dollars). We find significant price reactions in the ADR markets, and insignificant
reactions in local markets, and conclude that there is capital market segmentation in ADR markets for credit rating changes
of emerging market firms. We find evidence that investors react more strongly in the ADR markets than local markets because
they require higher costs of capital for firms cross-listed both in the ADR markets and local markets due to greater expected
bankruptcy costs and foreign exchange risks of those firms. We also report that stock markets react significantly, not only
to rating downgrades, but also to upgrades in the ADR markets.
相似文献
William T. MooreEmail: |
10.
Stephen P. Baginski John M. Hassell Michael D. Kimbrough 《Review of Quantitative Finance and Accounting》2008,31(3):311-330
The 1990s were characterized by substantial increases in the performance of and investor reliance on financial analysts. Because
managers possess superior private information and issue forecasts to align investors’ expectations with their own, we predict
that managers increased the quality of their earnings forecasts during the 1990s in order to keep pace with the improved forward-looking
information provided by financial analysts, upon which investors increasingly relied. Using a sample of 2,437 management earnings
forecasts, we document an increase in management earnings forecast precision, management earnings forecast accuracy, and managers’
tendency to explain earnings forecasts in 1993–1996 relative to 1983–1986. Given that these forecast characteristics are linked
to greater informativeness and credibility, we also document that the information content of management earnings forecasts,
as measured by the strength of share price responses to forecast news, increased in 1993–1996 relative to 1983–1986. As expected,
the increased information content of management forecasts primarily occurred for firms covered by financial analysts.
相似文献
Michael D. KimbroughEmail: |