Asymmetric market reactions of growth and value firms with management earnings forecasts

Chan, H., Faff, R., Ho, Y. K. and Ramsay, A. (2006) Asymmetric market reactions of growth and value firms with management earnings forecasts. International Review of Finance, 6 1-2: 79-97. doi:10.1111/j.1468-2443.2007.00060.x


Author Chan, H.
Faff, R.
Ho, Y. K.
Ramsay, A.
Title Asymmetric market reactions of growth and value firms with management earnings forecasts
Journal name International Review of Finance   Check publisher's open access policy
ISSN 1369-412X
1468-2443
Publication date 2006-03
Sub-type Article (original research)
DOI 10.1111/j.1468-2443.2007.00060.x
Volume 6
Issue 1-2
Start page 79
End page 97
Total pages 19
Place of publication Richmond, Vic., Australia
Publisher Wiley-Blackwell Publishing Asia
Language eng
Abstract We study the market reaction of Australian firms issuing management earnings forecasts (MEF). Specifically, we measure and distinguish between the immediate and post-earnings announcement impact of MEF. Our analysis is conditioned on growth/value characteristics and news surprise and we test for asymmetric effects on these two conditioning variables. We find that the 3-day returns following non-routine bad news forecasts are significantly more negative for growth firms than value firms. No significant differences are found for good news forecasts. In the post-earnings announcement period, both growth and value firms have significant negative post-earnings announcement drift following non-routine bad news forecasts but they are not significantly different from each other.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown
Additional Notes Journal issue: March/June 2006

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
 
Versions
Version Filter Type
Citation counts: Google Scholar Search Google Scholar
Created: Mon, 07 Mar 2011, 10:49:43 EST by Karen Morgan on behalf of UQ Business School