This study extends previous studies on the infor Mation content of voluntary quantitative forecasts by examining a sample of Australian qualitative forecasts. Content analysis was used to classify these forecasts into four categories. The direction of the share price revision was consistent with the direction of the qualitative forecast for all categories, but only unfavourable and qualified favourable qualitative forecasts were associated with statistically significant and marginally significant price revisions respectively.
Berelson, B., 1952, Content Analysis in Communication Research, (Illinois, The Free Press).
2.
Dev, S., 1974, Statements of company prospects, Accounting and Business Research, Autumn, 270–274.
3.
Finn, F.J., 1982, Internal Evaluation of Institutional Security Analysis' Research, Unpublished Manuscript, University of Queensland.
4.
Nichols, D.R. and J.J. Tsay, 1979, Security price reactions to long-range executive earning forecasts, Journal of Accounting Research, Spring, 140–155.
5.
Patell, J.M., 1976, Corporate forecasts of earnings per share and stock price behaviour: empirical tests, Journal of Accounting Research, Autumn, 246–76.
6.
Penman, S.H., 1980, An empirical investigation of the voluntary disclosure of corporate earnings forecasts, Journal of Accounting Research, Spring, 132–160.
7.
Sefcik, S. and R. Thompson, 1984, An Approach to Statistical Inference in Cross-Sectional Regression with Security Abnormal Returns as Dependent Variable, Working paper, University of British Columbia, March, Journal of Accounting Research (forthcoming).
8.
Spiegelman, M., C. Terwilliger, and F. Fearing, 1953, The reliability of agreement in content analysis, The Journal of Social Psychology, 175–87.
9.
Steele, A., 1982, The accuracy of Chairman's non-quantified forecasts: an exploratory study, Accounting and Business Research, Summer, 215–230.
10.
Waymire, G., 1984, Additional evidence on the infor Mation content of management earnings forecasts, Journal of Accounting Research, Autumn, 703–718.
