The Role of Analyst and Company Characteristics on the Credibility of Financial Analysts’ Earnings Forecasts with Supplementary Sales Forecasts

• Main Authors: Yun-Ting Chu, 朱韻婷
• Other Authors: Chien-JuLu
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/84247784593471601038

碩士 === 元智大學 === 商學碩士班(會計學程) === 100 === This study examines whether market reacts more strongly to earnings forecast revisions with sales forecast revisions, after considering the characteristics of analysts and companies. I find a positive association between analysts’ experience and market reaction to earnings forecast revisions with sales forecasts revisions. On the one hand, when analysts announce upward earnings forecast revisions with sales forecast revisions, it meets the expectation of investors. This results in a positive association between the high institutional ownership and market reaction. On the other hand, when analysts announce downward earnings forecast revisions with sales forecast revisions, most investors choose to believe the bad news. Therefore, there is no significantly different market reaction between the high and low institutional ownership. Finally, I find a positive association between operational complexity and market reaction to earnings forecast revisions with sales forecast revisions. Supplementary sales forecasts appear to increase the credibility of earnings forecasts, but the degree of the market reaction is also affected by the characteristics of analysts and companies.