Information Uncertainty and Analyst Forecast Behavior

  title={Information Uncertainty and Analyst Forecast Behavior},
  author={Xiaohui Zhang},
Prior literature observes that information uncertainty exacerbates investor underreaction behavior. In this paper, I investigate whether, as professional investment intermediaries, sellside analysts suffer more behavioral biases in cases of greater information uncertainty. I show that greater information uncertainty predicts more positive (negative) forecast errors and subsequent forecast revisions following good (bad) news, which corroborates previous findings on the post-analyst-revision… CONTINUE READING
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