Social learning and analyst behavior
| Autor: | Rosy Xu, Ville Rantala, Alok Kumar |
|---|---|
| Rok vydání: | 2022 |
| Předmět: |
History
Economics and Econometrics Polymers and Plastics Strategy and Management media_common.quotation_subject HG Industrial and Manufacturing Engineering Optimism Accounting 0502 economics and business Economics In-group favoritism Business and International Management ComputingMilieux_MISCELLANEOUS media_common 040101 forestry 050208 finance Actuarial science ComputingMilieux_THECOMPUTINGPROFESSION Earnings 05 social sciences Equity (finance) 04 agricultural and veterinary sciences Social learning 0401 agriculture forestry and fisheries Portfolio Business Finance |
| Zdroj: | Journal of Financial Economics. 143:434-461 |
| ISSN: | 0304-405X |
| DOI: | 10.1016/j.jfineco.2021.06.011 |
| Popis: | This study examines whether sell-side equity analysts engage in “social learning” where their earnings forecasts are influenced by the forecasts and outcomes of other analysts associated with other firms (i.e., the “peers”) in their respective portfolios. We find that analyst optimism is negatively correlated with the recent forecast errors among peers on other firms in the analyst portfolio. An analyst is also more likely to issue “bold” forecasts when similar forecasts were recently issued for other portfolio firms. Analysts learn more from their peers with similar personal characteristics. Overall, social learning is beneficial to analysts and improves their forecast accuracy. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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