英文摘要 |
In this paper, we use Taiwan listed companies undertaking seasoned equity offerings during 1989-2005 as empirical subject. The purposes of this paper are aimed at (1) Examining the relationship between firms earnings manipulation and current stock returns; (2) Exploring whether investors are led to over-extrapolate a firm’s earnings growth along with the availability of its accounting information; and (3) Testing whether the market is over-react or not. We find that the accountings earnings of non-earning-manipulating firms have more explanatory power for their stock return variations in term of the P-value of our regression. In addition, we find that no matter the firms manipulate their earnings or not, the investors do not over-extrapolate a firm’s earnings growth. Finally, we show that the stock prices of seasoned equity offerings firms would be influenced by market noise and investors over-reaction. |