Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/16131
Title: Investor response to zero and small positive earnings surprises
Authors: LIN ZHIXING
Keywords: ERC, Earnings management, Analyst forecast, Earnings surprises, Meeting or narrowly beating, investor response
Issue Date: 27-Jun-2007
Source: LIN ZHIXING (2007-06-27). Investor response to zero and small positive earnings surprises. ScholarBank@NUS Repository.
Abstract: Evidence in prior research suggests that firms that manipulate earnings and/or analyst earnings expectations are likely to report earnings that precisely meet or narrowly beat analyst earnings forecasts, resulting in a zero or small positive earnings surprise. Investors, therefore, are likely to be more skeptical of a zero or small positive earnings surprise in their attempt to identify possible manipulators on the earnings announcement date. I find that the ERC is lower for zero and small positive earnings surprises than the ERCs for earnings surprises in adjacent ranges. The result is consistent with investors seeing a zero or small positive earnings surprise in and of itself as an indication that manipulation has occurred. I also find evidence that analysts regard zero or small positive earnings surprises as the results of manipulations, and respond negatively to such earnings surprises.
URI: http://scholarbank.nus.edu.sg/handle/10635/16131
Appears in Collections:Ph.D Theses (Open)

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
LinZX.pdf495.38 kBAdobe PDF

OPEN

NoneView/Download

Page view(s)

262
checked on Dec 11, 2017

Download(s)

224
checked on Dec 11, 2017

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.