Michel, Jean-Sébastien - Centre Interuniversitaire sur le Risque, les Politiques … - 2014
I hypothesize that the stock market overreacts to management earnings forecasts. I find that negative management forecast surprises lead to a -5.9% abnormal return around the forecast and a 1.9% correction in the 2-month period after earnings are announced. Positive surprises work in the...