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http://dx.doi.org/10.22156/CS4SMB.2017.7.3.105

The Effect of Analysts' Earnings Forecasts Following Dividend Announcements on Stock Returns  

Hong, Chun-Uk (Kiwoom Securities)
Lee, Seong-Hyo (Department of General Education, MyongJi University)
Kim, Kyung-Ihl (Department of Management information, Korea National University of Transportation)
Publication Information
Journal of Convergence for Information Technology / v.7, no.3, 2017 , pp. 105-109 More about this Journal
Abstract
This paper examines the effect of the analysts' earnings forecast revisions on stock price after the dividend announcement of the firms has been released. We show that the analysts' upward revisions on earnings forecasts are followed by the positive cumulative abnormal return. We also investigate the signalling effect and the confirmation effect with respect to the effect of the dividend announcement and the earnings forecast revisions on stock price. The test results show that the confirmation effect is stronger than the signalling effect. That is, the investors react only when the analysts' forecasts coincide with the preceding dividend announcement.
Keywords
Dividend Announcement; Analysts' Earnings Forecast; Earnings Information; Accounting Information; Information Convergence;
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Times Cited By KSCI : 2  (Citation Analysis)
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