Impact of Monthly Revenue Announcement to Investment Strategy
Date Issued
2015
Date
2015
Author(s)
Shen, Chin-Wei
Abstract
To let investors acquire more instant accounting information, the 36th regulation of the Security Exchange Act requires listed companies announce their revenue of last month before 10th day of current month. Since monthly revenue announcement is a unique regulation in our country, many researchers tried to find out whether the data coming from such rule contains useful information for investors. However, some of those researches were not capable of reaching enough samples, or others were not available to acquire the practical date of revenue announcement. Although most researchers agree that monthly revenue announcement contains information value for investor, such conclusions were rejected by statistic results since these results could not pass significant test. This study pays an effort on resolving research limitations mentioned in last paragraph. By using physical date of monthly revenue announcement, which containes 18,782 monthly revenue data in the period of 2013 and 2014, this study tested the information value of monthly revenue announcement. The results of physical analysis discover that the return of investment is positively response to information disclosed by monthly revenue announcement, which means monthly revenue announcement actually affect investment decision. Furthermore, if monthly revenue announcements reflect bad news, investor could have more intense response then those announcements reflect good news. In the mean time, this study discovered that investors pay more attention in sustainable information. Investors would response heavier when sustainable good news occurred, and would response lighter when unsustainable good news occurred.
Subjects
revenue announcement
unexpected sales
abnormal return
Type
thesis
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