Cross-Extrapolative Beliefs: Evidence from Equity Analysts

• 成果类型: Article; Early Access
• 署名作者: Wang, Rex; Verwijmeren, Patrick
• 署名单位: Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2024.04903
• 发表日期: 2025
• 关键词: Behavioral finance; extrapolative beliefs; Experience effects; financial analyst

摘要

We study whether individuals form extrapolative beliefs across different tasks. In line with cross-extrapolation, equity analysts who experience bad news from some of their coverage firms become overly pessimistic about other firms in their coverage. This leads to disagreement among analysts and has implications for the stock market, as we observe effects on trading volume, return volatility, and pricing. Our findings highlight the relevance of non-domain-specific belief models.