| Summary: | 碩士 === 元智大學 === 會計學系 === 94 === Gibbs(1993)、Daniels et al.(1995) report that financial distressed companies often to bring up restructuring programs such as reengineering, assets disposal, or reduction of employment in order to improve their financial performance. Chaney et al.(1999) report that if restructuring charges make it easier to interpret the financial statements , then analysts’ forecast errors should be lower subsequent to the charge. Mendenhall (1991) documents a significant positive association between forecast revisions and the abnormal returns around subsequent earnings announcements. Built upon extant research, I investigate analysts forecast behavior in response to the announcements of corporate restructurings, including forecast revision and the degree of forecast errors.
The evidence indicates that (1) on average, analysts overestimate earnings to a greater extent subsequent to a large restructuring charges than small restructuring charges, and (2) The accuracy of short forecast horizons is higher than the that of long forecast horizons for restructuring forms versus non-restructuring firms.
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