Expectation Management in Taiwan

碩士 === 國立交通大學 === 財務金融研究所 === 103 === Earning expectations is a behavior that management guide analysts’ earnings forecast. For example, management guides analysts to revise their forecasts downward to a beatable level. Failing to meet or beat earnings expectation formed by analysts’ earnings foreca...

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Main Authors: Wu, Yu-Hsi, 吳昱錫
Other Authors: Hsieh, Wen-Liang
Format: Others
Language:zh-TW
Published: 2015
Online Access:http://ndltd.ncl.edu.tw/handle/87213882760392029647
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spelling ndltd-TW-103NCTU53040332016-08-12T04:14:05Z http://ndltd.ncl.edu.tw/handle/87213882760392029647 Expectation Management in Taiwan 台灣上市櫃公司預期管理現象之探討 Wu, Yu-Hsi 吳昱錫 碩士 國立交通大學 財務金融研究所 103 Earning expectations is a behavior that management guide analysts’ earnings forecast. For example, management guides analysts to revise their forecasts downward to a beatable level. Failing to meet or beat earnings expectation formed by analysts’ earnings forecast on the Earnings announcement date may result in a bad influence to their stock price. However, management may use expectation management instead of earning management if the accounting audit is strict. We study the phenomenon of expectation management in Taiwan. The data period is from 2006 to 2013, consisting of 30976 analyst reports issued by 45 brokers, and 419 listed firms are covered. Through the angle of each broker and the whole companies, I find that there is a high percent of analyst’s forecasts from optimistic level to pessimistic level. The forecasts are getting downward gradually with the announcement date approaches. All these evidences show that expectation management does exist in Taiwan. Through the regression from the literatures, I also find that there is a reward to MBE (Meeting or Beating Expectations) firms. However, if firms’ EPS reach the analyst’ forecast by the method of earning expectations, the investors will notice and reduce the reward to the firm. Finally, I find that different conditions of firms will get different reward when they are MBE. I examine three types of firms:growth company、high transient institutional ownership and firms with corporate financing activities. I find that the growth company and the high transient institution ownership have fewer premiums, and the firms with corporate financing company have higher premiums when they are MBE. The last two types will more likely to engage in expectation management, but growth company and insider trader will not. Hsieh, Wen-Liang 謝文良 2015 學位論文 ; thesis 39 zh-TW
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description 碩士 === 國立交通大學 === 財務金融研究所 === 103 === Earning expectations is a behavior that management guide analysts’ earnings forecast. For example, management guides analysts to revise their forecasts downward to a beatable level. Failing to meet or beat earnings expectation formed by analysts’ earnings forecast on the Earnings announcement date may result in a bad influence to their stock price. However, management may use expectation management instead of earning management if the accounting audit is strict. We study the phenomenon of expectation management in Taiwan. The data period is from 2006 to 2013, consisting of 30976 analyst reports issued by 45 brokers, and 419 listed firms are covered. Through the angle of each broker and the whole companies, I find that there is a high percent of analyst’s forecasts from optimistic level to pessimistic level. The forecasts are getting downward gradually with the announcement date approaches. All these evidences show that expectation management does exist in Taiwan. Through the regression from the literatures, I also find that there is a reward to MBE (Meeting or Beating Expectations) firms. However, if firms’ EPS reach the analyst’ forecast by the method of earning expectations, the investors will notice and reduce the reward to the firm. Finally, I find that different conditions of firms will get different reward when they are MBE. I examine three types of firms:growth company、high transient institutional ownership and firms with corporate financing activities. I find that the growth company and the high transient institution ownership have fewer premiums, and the firms with corporate financing company have higher premiums when they are MBE. The last two types will more likely to engage in expectation management, but growth company and insider trader will not.
author2 Hsieh, Wen-Liang
author_facet Hsieh, Wen-Liang
Wu, Yu-Hsi
吳昱錫
author Wu, Yu-Hsi
吳昱錫
spellingShingle Wu, Yu-Hsi
吳昱錫
Expectation Management in Taiwan
author_sort Wu, Yu-Hsi
title Expectation Management in Taiwan
title_short Expectation Management in Taiwan
title_full Expectation Management in Taiwan
title_fullStr Expectation Management in Taiwan
title_full_unstemmed Expectation Management in Taiwan
title_sort expectation management in taiwan
publishDate 2015
url http://ndltd.ncl.edu.tw/handle/87213882760392029647
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