The change in the views of investors on earnings information

• Main Authors: Hsin-Wei Pan, 潘信瑋
• Other Authors: Tay-chang Wang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/kh3vnr

碩士 === 國立臺灣大學 === 會計學研究所 === 105 === The core of this study is to find out how investors value the information content of earnings that firms reported earnings are meeting or narrowly beating the earning expectations. Based on the findings from Burgstahler and Dichev (1997), firms will manage reported earnings to avoid earnings decreases and losses. Therefore, this study compares the coefficient in the regression of abnormal stocks returns on reported earnings (earnings response coefficient, ERC) across specific ranges of reported earnings. I classify the research years into three periods: (1)1997 to 2001, (2) 2002 to 2007, and (3) 2010 to 2013, and the evidence shows that the ERC for reported earnings in the range of [0 ~ 0.02) is lower than adjacent ranges in the observations from 2010 to 2013, but the ERC for reported earnings in the range of [0 ~ 0.02) is the highest in the observations from 1997 to 2001. That is, investors have been skeptical about the reported earnings which are meeting or just beating the earnings expectations. Furthermore, this study also finds the evidence that the skepticism of investors is right. The relation of future performance and current earnings surprise is more negative for current reported earnings which are meeting or just beating the earnings expectations.