Social learning and analyst behavior

• 成果类型: Article
• 署名作者: Kumar, Alok; Rantala, Ville; Xu, Rosy
• 署名单位: University of Miami; Chinese University of Hong Kong
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.06.011
• 发表日期: 2022
• 页码: 434-461
• 关键词: Sell-side equity analysts; social learning; Bold forecasts; FORECAST ACCURACY

摘要

This study examines whether sell-side equity analysts engage in social learning in which their earnings forecasts for certain firms are influenced by the forecasts and outcomes of peer analysts associated with other firms in their respective portfolios. We find that ana -lyst optimism is negatively correlated with recent forecast errors, by peers, on other firms in the analyst's portfolio. An analyst is also more likely to issue bold forecasts when peers recently issued similar forecasts for other portfolio firms. Analysts learn more from peers with similar personal characteristics. Overall, social learning benefits analysts and improves their forecast accuracy. (c) 2021 Published by Elsevier B.V.