The Study of the Information Content of the Voluntary Earnings Forecasts in Taiwan Stock Exchange Marke

• Main Authors: Hsiao-Chia, Chen, 陳筱佳
• Other Authors: Yan-Ching, Tsai
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/02897537596957598819

碩士 === 中國文化大學 === 會計研究所 === 92 === Because of the situation of information asymmetry, the investors need a lot of in-formation about making decisions in order to reduce their investment risk. The investors want the information in time and forecast the companies’ future value. This study inves-tigates whether voluntary earnings forecasts can affect investors’ decisions, and then make the stock price change. Namely the study examines the information content of the voluntary earnings forecasts. The sample contains 2,658 observations selected from TEJ Database during 1985 to 2003. The event study is used to test the information content of voluntary earnings forecasts by observing abnormal return of event day. In addition, voluntary earnings forecasts are discriminated between good news and bad news to observe the information content. The empirical results show that voluntary earnings forecasts have information con-tent. When the earnings forecasts are good news, abnormal returns have positive reac-tions signally, and the information would be leakage before event day; On the contrary, abnormal returns have negative reactions would continue for several days after event day when the earnings forecasts are bad news.