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ACCURATE PREDICTION OF ANALYST FORECAST REVISIONS AND STOCK RETURNS IN THE EMERGING MALAYSIAN MARKET: EPS VERSUS NON-EPS VARIABLES

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This paper examines the impact of accurate prediction of analyst forecast revisions of EPS and non-EPS variables un Malaysian stock prices. Investors who are able to predict accurately upward revision in forecast of P/E ratio could reap the largest cumulative abnormal return of 18. 34 percent per annum. The findings also support the superiority of accurate prediction of upward revisions in forecasts of P/E and cash flow per share over EPS. In contrast, investors who can predict accurately downward revision in EPS forecasts seem to outperform those who predict accurately similar revisions in non-EPS forecasts.

Abstract

INTRODUCTION

LITERATURE REVIEW

HYPOTHESES

DATA AND RESEARCH DESIGN

RESULTS

SUMMARY

REFERENCES

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