The Intra-Industry Effects of Revenue Surprises

• Main Authors: Yi-Chen Hsu, 許怡貞
• Other Authors: Yang-Pin Shen
• Format: Others
• Language: en_US
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/05838206666746353889

碩士 === 元智大學 === 財務金融研究所 === 93 === ABSTRACT This study examines the intra-industry effects of announcements of revenue surprises. Three rival-portfolio-formation methods are used to examine the stock price reactions of industry rivals on revenue surprises. Using a sample of 81935 announcements, we find that industry rivals on average realize insignificant abnormal returns. We further examine the stock price reactions of industry rivals of the first reporting firms. The results still appear to the announcements of revenue surprises have no impact on industry rivals. The overall empirical results suggest that no evidence show the connection between revenue surprises announcements and industry rivals. Therefore, the information in revenue surprises announcements is firm-specific.