Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/28868
Title: Earnings forecast errors in IPO prospectuses and their associations with initial stock returns
Authors: Chen, G
Firth, M
Krishnan, GV
Keywords: Earnings forecasts
G12
G15
IPOs
Issue Date: 2001
Source: Journal of multinational financial management, 2001, v. 11, no. 2, p. 225-240 How to cite?
Journal: Journal of Multinational Financial Management 
Abstract: Companies making initial public offerings in Hong Kong often include a forecast of the next year's profit in the new issue prospectus. The forecast is used by investors to help them value the company, decide whether to subscribe to the new issue, and decide whether to invest on the first day of trading. The accuracy of the forecast is crucial if the forecast is to be a credible signal. Our study uses a number of error metrics to examine forecast accuracy. In general, forecasts appear to be quite accurate and they are far better than the predictions derived from simple time series models. Cross-sectional models are derived to explain variations in accuracies but they have very weak results. Our results also suggest that investors are able to anticipate forecast errors at the time of listing.
URI: http://hdl.handle.net/10397/28868
ISSN: 1042-444X
DOI: 10.1016/S1042-444X(00)00051-7
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

28
Last Week
0
Last month
1
Citations as of Jun 22, 2017

Page view(s)

30
Last Week
0
Last month
Checked on Jun 25, 2017

Google ScholarTM

Check

Altmetric



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