Changes in share prices as a response to earnings forecasts regarding future real profits

Leszek Czerwonka ()

Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), 2009, vol. 56, 81-90

Abstract: One of the analytical methods in financial economics is an event study. The event study allows to measure influence of some information (for example: changes at the board of directors, merger no-tices, and other) on value of companies. According to the event study method the abnormal change of price is measured, which is caused by disclosing the information. The aim of this study is to measure the influence of disclosing initial earnings forecasts on share prices as well as examination of the rela-tionships between abnormal returns and prospective profits of companies. Each new, additional piece of information has influence on share price, however, it should still be the object of investigations how investors connect each piece of information with share prices.

Keywords: evaluation of share prices; earnings forecasts; event study (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://anale.feaa.uaic.ro/anale/resurse/07_F03_Czerwonka.pdf (application/pdf)
http://anale.feaa.uaic.ro/anale/en/Arhiva%202009%20Czerwonka/261 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aic:journl:y:2009:v:56:p:81-90

Access Statistics for this article

More articles in Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015) from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().