Earnings Forecasts Disclosed in SEO Prospectuses: Evidence from an Emerging Market

Georgia Siougle

Journal of Emerging Market Finance, 2007, vol. 6, issue 3, 249-267

Abstract: This study investigates the credibility of earnings forecasts disclosed by companies listed on the Athens Stock Exchange. The focus of the study is on earnings forecasts disclosed in the prospectus of listed firms that are issuing equity through a rights issue. The results of the study show that the earnings forecasts are overestimated and exhibit low accuracy, a finding suggesting that companies are optimistic when they develop their forecasts. The level of forecast errors can be explained by valuation uncertainty, which is measured by the standard deviation of stock returns prior to the equity offering, and the market-to-book ratio. Furthermore, historical earnings are useful in explaining post issue stock prices.

Keywords: JEL Classification: G14, G15; Seasoned equity offerings; prospectus earnings forecasts; Athens sstock exchange (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/097265270700600302 (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:sae:emffin:v:6:y:2007:i:3:p:249-267

DOI: 10.1177/097265270700600302

Access Statistics for this article

More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications ().