The effect of reporting restructuring charges on analysts' forecast revisions and errors
Article Abstract:
A study investigated the difficulty experienced by the market in interpreting announcements of restructuring charges by analyzing how analysts adjust their earnings forecast. Results are generally consistent with the observation that restructuring charges signal decreased profitability in the relatively short term but elicit a cautious anticipation of improved profits in the long term. There was no evidence to prove that restructuring charges enhances analysts' ability to project firms' future earnings, but there is some evidence that it impairs it.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1999
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New product innovations and stock price performance
Article Abstract:
Empirical evidence on the value placed by the financial marketplace on product and service innovations is presented. The market is found to be very efficient at evaluating and synthesizing information about firms' product and service innovations. Firms which unveil new products or services gain an excess return of about 0.60% over a three-day period commencing on the product/service announcement date. Innovating firms are also found to be better performers since the market rewards those which successfully invest in long-term product development.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1992
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An empirical investigation of factors affecting the earnings association coefficient
Article Abstract:
Firm-specific attributes which influence the association between unexpected earnings and security returns are examined. Subset analysis and indicator variable analysis are used to analyze cross-sectional variations in the coefficient on unexpected earnings regressed against security returns and measured over an annual time frame. Three factors which influence the association between reported earnings and security returns are identified. Results do not show a systematic risk or earnings volatility effect.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1992
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