Managing decision fatigue: Evidence from analysts' earnings forecasts

• 成果类型: Article
• 署名作者: Jiao, Yawen
• 署名单位: University of California System; University of California Riverside
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2023.101615
• 发表日期: 2024
• 关键词: projection bias; career concerns; self-control; investor attention; allocation; accuracy; product; COSTS; FIRMS

摘要

Prior literature shows decision fatigue reduces analysts' forecast accuracy. We study whether analysts strategically manage their decision fatigue. Firms within an analyst's research portfolio can differentially affect the analyst's reputation and career, with larger firms with greater trading volumes and institutional ownership being more important. We find that analysts choose to issue forecasts for more important firms when they are less decision fatigued, i.e., when the number of prior forecasts the analyst has issued in the day is lower. Young analysts, analysts in low -status brokerage houses, and analysts who become decision fatigued more easily manage fatigue more, and analysts experience more favorable career outcomes after strategically managing fatigue. Finally, fatigued analysts differentiate between more important and other firms in herding and self -herding. (c) 2023 Elsevier B.V. All rights reserved.