1- Isfahan(Khorasgan) Branch, Islamic Azad University 2- isfahan university
Abstract: (3563 Views)
The requirement for companies to report their interim earning and annual earnings forecast within 30-days overpass from each interim-period will raise the question whether the simultaneous announcement of these two profits affects on the market reaction to the type and nature of the news each of these profits and causes a different reaction of the capital market to this type of information, and most importantly, which market will pay more attention to one of these profits. In so doing, we have selected 101 listed-companies as our resulting research sample in period 2008-2014 using systematic sampling method as well as applying some restrictions to perform necessary tests. From hypothesis testing, we find that market reaction to annually earnings forecast news seems to be greater than that of simultaneous interim earnings news. Also, consistency (contrariety) of both these simultaneous news have not significantly affected the information content of majority of annually earnings forecast. Furthermore, we also show that market reaction measure on good-news associated with both simultaneous interim earnings and annually earnings forecast is greater than the case of bad-news
aghabeikzadeh M, forooghi D. The Invedtigating of Stock Market Reaction to Interim Earning and Annually Earning Forecasts contemporaneous News on Tehran Stock Exchange. fa 2017; 9 (34) :124-149 URL: http://qfaj.mobarakeh.iau.ir/article-1-1001-en.html