Earnings Forecasts and the Information Contained in Spinoff Announcements.
This study examines spinoff announcements in conjunction with financial analysis' forecasts of earnings. The analysis shows that spinoff announcement abnormal returns are significantly related to the firm's information environment as proxied by financial analysts' earnings prediction errors. The findings also indicate that analysts significantly increase their short-term earnings forecasts in response to spinoffs, but do not significantly revise their long-term earnings forecasts. However, the earnings revisions are not significantly different across prediction error groups, which confirms that spinoff-related abnormal returns cannot be attributed solely to expected performance gains. Copyright 1998 by MIT Press.
Year of publication: |
1998
|
---|---|
Authors: | Best, Ronald W ; Best, Roger J ; Agapos, A M |
Published in: |
The Financial Review. - Eastern Finance Association - EFA. - Vol. 33.1998, 3, p. 53-67
|
Publisher: |
Eastern Finance Association - EFA |
Saved in:
Saved in favorites
Similar items by person
-
The Effect of Self-Tender Offers on Earnings Expectations
Best, Ronald W, (1998)
-
Prior Information and the Market Reaction to Dividend Changes.
Best, Roger J, (2001)
-
Defense Profits and the Renegotiation Board in the Aerospace Industry.
Agapos, A M, (1970)
- More ...