Does Past Success Lead Analysts to Become Overconfident?

  title={Does Past Success Lead Analysts to Become Overconfident?},
  author={Gilles Hilary and Lior Menzly},
  journal={Management Science},
This paper provides evidence that analysts who have predicted earnings more accurately than the median analyst in the previous four quarters tend to be simultaneously less accurate and further from the consensus forecast in their subsequent earnings prediction. This phenomenon is economically and statistically meaningful. The results are robust to different estimation techniques and different control variables. Our findings are consistent with an attribution bias that leads analysts who have… CONTINUE READING

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