Publication Type
Journal Article
Version
acceptedVersion
Publication Date
6-2011
Abstract
Using the bootstrap method, we explore the characteristics of revisions in Japanese earnings forecast data. We find that forecast revisions exhibit a downward trend over time as the actual earnings announcement date approaches, and are serially correlated with three significant lags. Using these characteristics we develop a model to estimate abnormal forecast revisions, and illustrate the model's use with a sample of Japanese companies announcing seasoned equity offerings (SEOs). In contrast to results obtained by studies using American data, our findings indicate significant positive upward revisions when Japanese firms announce an SEO.
Keywords
Earnings forecast revisions, Japanese seasoned equity offerings, Japan
Discipline
Asian Studies | Corporate Finance | Portfolio and Security Analysis
Research Areas
Finance
Publication
International Review of Economics and Finance
Volume
20
Issue
3
First Page
376
Last Page
387
ISSN
1059-0560
Identifier
10.1016/j.iref.2010.11.012
Publisher
Elsevier
Embargo Period
4-14-2021
Citation
CATON, Gary L.; CHAN, Justin S. P.; GOH, Jeremy C.; and YANG, Sheng Yung.
An analysis of Japanese earnings forecast revisions with application to seasoned equity offerings. (2011). International Review of Economics and Finance. 20, (3), 376-387.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6684
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.iref.2010.11.012
Included in
Asian Studies Commons, Corporate Finance Commons, Portfolio and Security Analysis Commons