The Relation Between Broker’ Earnings Forecasts and Stock Returns －The Case of Seasoned Equity Offerings of Taiwan Listed and OTC Companies

• Main Authors: YUE-HENG LIN, 林岳亨
• Other Authors: Tze-Wei Fu
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/smwsbx

碩士 === 國防管理學院 === 國防財務資源研究所 === 91 === Abstract This study aims to simultaneously evaluate the relationships among stock underwriting、analyst coverage and stock returns. The event of seasoned equity offerings (SEO) is adopted for this study. This study hypothesizes that (1) SEO underwriters are inclined to make favorable forecast to serve the SEO firms, (2) the stock returns of SEO firms is expected to be positive which is the result of favorable information, (3) investors are expected to have abnormal positive stock return when they follow SEO underwriters’ recommendations. The findings are followings: (1) underwriters do make favorable forecast to serve the SEO firms, (2) the SEO firms have no abnormal positive returns, (3) investors do not have abnormal positive stock returns when they follow underwriters’ recommendations. The SEO underwriters try to keep good relationships with SEO firms by making favorable forecasts about SEO, but the investors do not have abnormal positive returns while following SEO underwriters’ recommendations. Keyword: financial forecast, analyst coverage, underwriters, abnormal returns.