This study examines whether the Taiwanese regulation requiring disclosure of earnings forecasts in the IPOs resulted in disclosure of more optimistic earnings forecasts and whether the forecast error was reduced more by manipulating the reported earnings rather than revising the earnings...

This study adopts Hamilton and Susmel's (1994) Markov-switching ARCH (hereafter SWARCH) model to examine the volatility of the valued-weighted Taiwan Stock Index (hereafter TAIEX) returns. We also conduct sensitivity tests on comparison observations of Dow Jones and Nikkei stock indices. Our...