Earnings forecast revisions and security returns: ...
Description
Citation
| Title | Earnings forecast revisions and security returns: Canadian evidence |
| Author(s) | S. Hennessey |
| Date | 1995 |
| Volume | 25 |
| Issue | 100 |
| Start page | 240 |
| Abstract | The impact that revisions of financial analysts' forecasts of earnings have on Canadian security returns during the 1979-1988 period is tested using an event study methodology. A post-revision announcement drift in security prices is documented; the Canadian capital market displays a marked delay in reacting to positive revisions in earnings forecasts. Contingent on revision size, positive and significant excess returns are apparent for up to 7 months following their release. The returns, before transaction costs, are not marginal; over a 12-month holding period, excess returns are 18.2%. The results for negative and non-revisions in earnings forecasts suggest that the market reacts quite efficiently to the information implicit in these events. |
| ISSN | 00014788 |
Using APA 6th Edition citation style.
[Page generation failure. The bibliography processor requires a browser with Javascript enabled.]
Times viewed: 68
