Security Price Reaction to Qualitative Forecast Infor Mation

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.