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Security Price Reaction to Qualitative Forecast Infor Mation

Author

Listed:
  • N. A. Sinclair

    (Faculty of Economics & Commerce, The University of Melbourne.)

  • V. A. Fatseas

    (Faculty of Commerce, The University of New South Wales.)

  • K. T. Trotman

    (Faculty of Commerce, The University of New South Wales.)

Abstract

This study extends previous studies on the infor Mation content of voluntary quantitative forecasts by examining a sample of Australian qualitative forecasts. Content analysis was used to classify these forecasts into four categories. The direction of the share price revision was consistent with the direction of the qualitative forecast for all categories, but only unfavourable and qualified favourable qualitative forecasts were associated with statistically significant and marginally significant price revisions respectively.

Suggested Citation

  • N. A. Sinclair & V. A. Fatseas & K. T. Trotman, 1986. "Security Price Reaction to Qualitative Forecast Infor Mation," Australian Journal of Management, Australian School of Business, vol. 11(2), pages 231-240, December.
    • Handle: RePEc:sae:ausman:v:11:y:1986:i:2:p:231-240
    DOI: 10.1177/031289628601100207
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    References listed on IDEAS

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    1. Patell, Jm, 1976. "Corporate Forecasts Of Earnings Per Share And Stock-Price Behavior - Empirical Tests," Journal of Accounting Research, Wiley Blackwell, vol. 14(2), pages 246-276.
    2. Waymire, G, 1984. "Additional Evidence On The Information-Content Of Management Earnings Forecasts," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 703-718.
    3. Penman, Sh, 1980. "An Empirical-Investigation Of The Voluntary Disclosure Of Corporate-Earnings Forecasts," Journal of Accounting Research, Wiley Blackwell, vol. 18(1), pages 132-160.
    4. Nichols, Dr & Tsay, Jj, 1979. "Security Price Reactions To Long-Range Executive Earnings Forecasts," Journal of Accounting Research, Wiley Blackwell, vol. 17(1), pages 140-155.
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    Cited by:

    1. Karen Benson & Peter M Clarkson & Tom Smith & Irene Tutticci, 2015. "A review of accounting research in the Asia Pacific region," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 36-88, February.

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