Do market predictions affect its reaction to UK listed industrial firms' corporate refocusing announcements?

This paper investigates market reaction to firms' refocusing announcements from the perspective of investors' predicted probability. The results reveal the following: Firstly, the market reaction is significantly positive if managers announce the refocusing in the month when investors' predicted probability is high. Secondly, there is no significant market reaction if managers announce refocusing in the month when investors' predicted probability is low. Thirdly, the association between stock returns and investors' high predicted probability is significantly negative if managers fail to announce refocusing. Fourthly, the association between stock returns and investors' low predicted probability is significantly positive if managers did not announce refocusing.