Investigation Of The Reference Financial Forecast Upgrade Of Listed Technology Companies

The system of financial forecast begins in Britain. Today, regulations and requirements of financial forecast vary from one country to another. However, only a few countries in the world still enforce the mandatory financial forecast system for listed companies, and Taiwan is one of them Taiwan has started discussing the regulation of the financial forecast system of listed companies since 1984, though complaints on the system from listed companies keep arising and investors cannot judge the reliability of forecast data announced by the authorities due to the changes in time and space over time, the SFC still insists on the system. This paper thus investigated (l)how investors can make correct judgment of the forecast data;(2)how to apply the system to different businesses; and (3)how businesses can provide correct information to investors efficiently.After reviewing related literature and the information content of financial forecast upgrade, the financial forecast of King Yuan Electronics in 2001 and Macronix, Heching Electronics, and Hwatung Electronics in 2002 are examples of this paper to educate investors;(l) how to reduce speculation and stop people from using accountiug tricks by examining the conrelations between the trend of stock price and transaction volumeand upgrade revealed in the financial forecast upgrade and the threshold and causes of forecast upgrade; and how to change from a passive role into an active role by judging all information covered in the financial forecast upgrade, when there is no law to govern the frequency of financial forecast adjustments and the accuracy of forecast data of listed companies in Taiwan.