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ANALYST FORECASTS AND HERDING BEHAVIOR

delete1994-01-01
delete521
PRE
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Brett Trueman *
DOI：10.1093/rfs/7.1.97delete
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Abstract

Abstract

En 中文
The use of analyst forecasts as proxies for investors' earnings expectations is commonplace in empirical research. An implicit assumption behind their use is that they reflect analysts' private information in an unbiased manner. As demonstrated here, this assumption is not necessarily valid. is shown to be a tendency for analysts to release forecasts closer to prior earnings expectations than is appropriate, given their information. Further, analysts exhibit herding behavior, whereby they release forecasts similar to those previously announced by other analysts, even when this is not justified by their information. These results are shown to have interesting empirical implications.
Keywords:
MANAGEMENT EARNINGS FORECASTS
UNEXPECTED EARNINGS
EXPECTATIONS
INFORMATION
CASCADES
RETURNS
MARKET
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Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.

Journal

Review of Financial Studies cover
Review of Financial Studies
IF:
5.4
Papers:
2.8K
Citations:
3.0W

Organization

No organization information available