Search results for: Juho Kanniainen

2 How Stock Market Reacts to Guidance Revisions and Actual Earnings Surprises

Authors: Tero Halme, Juho Kanniainen, Markus Nordberg

Abstract:

According to the existing literature, companies manage analysts’ expectations of their future earnings by issuing pessimistic earnings guidance to meet the expectations. Consequently, one could expect that markets price this pessimistic bias in advance and penalize companies more for lowering the guidance than reward for beating the guidance. In this paper we confirm this empirically. In addition we show that although guidance revisions have a statistically significant relation to stock returns, that is not the case with the actual earnings surprise. Reason for this could be that, after the annual earnings report also information on future earnings power is given at the same time.

Keywords: Management guidance, earnings guidance, pessimistic bias

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1 The Pragmatist Basis of Material Hermeneutics

Authors: Juho Lindholm

Abstract:

Practical hermeneutics explores the emergence of meaning in scientific practice. Visual hermeneutics is its subclass which explores the emergence of meaning in instrumentally mediated interactions with scientific objects. There remains to be explained, upon what theory of meaning their discussions are based. Linguistic theories of meaning seem utterly inappropriate for the analysis of the non-linguistic meanings that such hermeneutics invoke. In this article, it will be shown by conceptual analysis that the so-called “pragmatic maxim” provides sufficient resources for the philosophical analysis of such meanings. The “pragmatic maxim” states that the meaning of a thing consists in the potential practical effects of that thing. Because this notion is not confined to language, it can be broadly applied to anything meaningful, including practices and the instruments which are part of practices.

Keywords: Hermeneutics, philosophy of science, pragmatism, theory of meaning.

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