Do Japanese Analysts Overreact or Underreact to Earnings Announcements?
Several recent studies have used US, analysts' forecasts to test for underreaction or overreaction to information in earnings announcements. These tests have provided mixed results. Evidence in Mendenhall (1991) is that analysts underreact. By contrast, results in De Bondt and Thaler (1990) show ove...
| Publicado en: | Abacus Vol. 32; no. 1; pp. 81 - 102 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Mar1996
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=6129516&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 6129516 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Mar1996 vid: 32 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 6129516 10.1111/j.1467-6281.1996.tb00452.x ppf: 81 ppct: 21 formats: fmt: @attributes: type: P size: 753KB tig: atl: Do Japanese Analysts Overreact or Underreact to Earnings Announcements? aug: au: Mande, Vevek Kwak, Wikil affil: Assistant Professors, College of Business Administration. University of Nebraska, Omaha. su: Accounting standards Corporate profits Corporate finance Financial statements Earnings forecasting Japanese people Japan United States sug: subj: Japan United States Accounting standards Corporate profits Corporate finance Financial statements Earnings forecasting Japanese people keyword: Analysts Earnings ab: Several recent studies have used US, analysts' forecasts to test for underreaction or overreaction to information in earnings announcements. These tests have provided mixed results. Evidence in Mendenhall (1991) is that analysts underreact. By contrast, results in De Bondt and Thaler (1990) show overreaction by U.S. financial analysts to earnings announcements. The current study contributes to this topic by examining over/underreaction by Japanese financial analysts. Test results show that Japanese analysts do not overreact to earnings announcements, marker to book ratios and sales growth. Instead, there is strong evidence that Japanese analysis underreact to earnings announcements and that their underreaction is more pronounced for firms with mostly permanent earnings. Our results also show that Japanese analysts display larger forecast biases for earnings reported under U.S. GAAP as opposed to Japanese GAAP. Finally, we find that U.S. analysts discount information in earnings announcements to a larger degree (relying to a greater extent on information in past prices instead) when compared to their Japanese counterparts. Further, in contrast to their Japanese counterparts, these analysts display no optimistic bias. The results above suggest that the impact of each country's unique culture and capital norms will have to be taken into account by policy makers in evaluating the feasibility of harmonization of accounting standards. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 1996 holdings: @attributes: islocal: N |
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