A Study on earning manipulate and reaction of stock market--Take seasoned equity offerings(SEO) for example

• Main Authors: Shiau-Fen Shiau, 蕭小芬
• Other Authors: Chun-An Li
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/38438716783180144985

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 91 === This study examines the relationship between earning-manipulation of a firm and the market reaction to its stock price by a sample of listed companies undertaking seasoned equity offerings. The research aim is to explore whether investors is led to over-extrapolates a firm’s earnings growth along with the availability of its financial information. Results show that investors seem to have less confidence upon those companies attempting to manipulate the book value of their assets, and thus cast more doubts to the validity of their current and past earning figures, and vice versus to those firms of non-manipulations. This paper also found stock prices will be influenced by noise trading and market over-reaction.