| Summary: | 碩士 === 國立成功大學 === 國際管理碩士在職專班 === 96 === An extensive body of finance literature documents the role of innovation on business performance. Specifically, previous literatures have examined analysts forecasts of future earnings around firm-level events, but not patent announcements. Moreover, the high uncertainty of information conveyed in patent grants poses an interesting challenge for analysts. This study investigates whether the level of innovation has any effect on analysts dispersion and analysts forecast revisions of future earnings around the announcements of patent grants. By means of the analysts dispersion measure and the expectations model of earnings forecast revisions, the results demonstrate that greater analyst followings and lower volatility of forecasts produce lesser analysts forecast dispersion, more so in discrete industries than in complex industries. This evidence implies that the more information about uncertain earnings exists, the more expectations are created and hence, the greater standard deviation is produced among analysts. On the other hand, the lack of an association between the current-year forecast revisions in earnings and industry classification indicates that while there is unfavorable information being conveyed by the patent grant announcement, it is information which is not in any way related to the industry classification. These results present an important managerial implication, which is on average, financial analysts do not significantly react to all patent grant announcements, rather, they only respond toward earnings forecast revisions if the patent grant poses a big impact to its field of industry.
|
|---|
