An analysis of Japanese earnings forecast revisions with application to seasoned equity offerings

An analysis of Japanese earnings forecast revisions with application to seasoned equity offerings

Using the bootstrap method, we explore the characteristics of revisions in Japanese earnings forecast data. We find that forecast revisions exhibit a downward trend over time as the actual earnings announcement date approaches, and are serially correlated with three significant lags. Using these cha...

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Bibliographic Details
Main Authors: CATON, Gary L., CHAN, Justin S. P., GOH, Jeremy C., YANG, Sheng Yung
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2011
Subjects:
Earnings forecast revisions
Japanese seasoned equity offerings
Japan
Asian Studies
Corporate Finance
Portfolio and Security Analysis
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/6684
https://ink.library.smu.edu.sg/context/lkcsb_research/article/7683/viewcontent/Japanese_Earnings_Forecast_2011_av.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:Using the bootstrap method, we explore the characteristics of revisions in Japanese earnings forecast data. We find that forecast revisions exhibit a downward trend over time as the actual earnings announcement date approaches, and are serially correlated with three significant lags. Using these characteristics we develop a model to estimate abnormal forecast revisions, and illustrate the model's use with a sample of Japanese companies announcing seasoned equity offerings (SEOs). In contrast to results obtained by studies using American data, our findings indicate significant positive upward revisions when Japanese firms announce an SEO.

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