This article examines common stock price behavior which accompanied the mandated disclosure of 2,532 forecasted earnings adjustment during the years 1386-1390 (Iranian calendar). We use event study methodology applying 11 days as event window (5 days before and 5 days after announcement) and 180 days as estimation period. Abnormal return calculated by four methods include mean adjusted return, market mean return, residual of market model and difference of CAPM. We found positive adjustments of forecasted earnings per share cause rise of stock price, but reduction of stock price because of negative adjustments of forecasted earnings per share is rejected.
Masoumi,J. and Hamidian,H. (2013). Announcement of Forecasted Earnings Per Share Adjustments and Stock Prices. Applied Research in Financial Reporting, 2(1), 131-146.
MLA
Masoumi,J. , and Hamidian,H. . "Announcement of Forecasted Earnings Per Share Adjustments and Stock Prices", Applied Research in Financial Reporting, 2, 1, 2013, 131-146.
HARVARD
Masoumi J., Hamidian H. (2013). 'Announcement of Forecasted Earnings Per Share Adjustments and Stock Prices', Applied Research in Financial Reporting, 2(1), pp. 131-146.
CHICAGO
J. Masoumi and H. Hamidian, "Announcement of Forecasted Earnings Per Share Adjustments and Stock Prices," Applied Research in Financial Reporting, 2 1 (2013): 131-146,
VANCOUVER
Masoumi J., Hamidian H. Announcement of Forecasted Earnings Per Share Adjustments and Stock Prices. Applied Research in Financial Reporting, 2013; 2(1): 131-146.
