The effects of predictability on stock price response to the financing decision

Article Abstract:

Multiple discriminant analysis is used to test for differential stock price reactions to new issues of debt or common stock while controlling for predictability of issue type. Results suggest that investors are relatively unresponsive to debt issues regardless of whether debt or common stock is predicted to be issued. However, when the probability of a common stock issue is high, investors appraently price their probability prior to the issue announcement.

Finance, Corporations, Corporate finance

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Financial statements, investment analyst forecasts and abnormal returns

Article Abstract:

A study showed that financial analysts do not satisfy rational expectations, resulting in high earnings forecast errors. Using the least squares regression and LOGIT models, it was shown that error resulted from failure of analysts to use all available financial information effectively. Results also showed a positive relationship between positive abnormal returns, analyst forecast errors and greater-than-expected earnings.

Earnings per share

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Fundamental information and monetary policy: the implications for earnings and earnings forecasts

Article Abstract:

Research is presented concerning the relationship between market value and book value to significant changes in earnings. The close relationship between monetary policy, signals about changes in earnings and earnings changes is discussed.

Domestic Financial Transactions, Research, Monetary policy, Wages, Wages and salaries, Forecasting, Book value (Accounting)

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