First Impression Bias: Evidence from Analyst Forecasts*
| العنوان: | First Impression Bias: Evidence from Analyst Forecasts* |
|---|---|
| المؤلفون: | Phong Truong, Ben Lourie, Thomas G. Ruchti, David Hirshleifer |
| المصدر: | Review of Finance. 25:325-364 |
| بيانات النشر: | Oxford University Press (OUP), 2020. |
| سنة النشر: | 2020 |
| مصطلحات موضوعية: | Economics and Econometrics, Accounting, media_common.quotation_subject, Negativity bias, Equity (finance), Econometrics, Pessimism, Set (psychology), First impression (psychology), Psychology, Behavioral economics, Finance, media_common |
| الوصف: | We present evidence of first impression bias among finance professionals in the field. Equity analysts’ forecasts, target prices, and recommendations suffer from first impression bias. If a firm performs particularly well (poorly) in the year before an analyst follows it, that analyst tends to issue optimistic (pessimistic) evaluations. Consistent with negativity bias, we find that negative first impressions have a stronger effect than positive ones. The market adjusts for analyst first impression bias with a lag. Finally, our findings contribute to the literature on experience effects. We show that a set of professionals in the field, equity analysts, apply U-shaped weights to their sequence of past experiences, with greater weight on first experiences and recent experiences than on intermediate ones. |
| تدمد: | 1573-692X 1572-3097 |
| DOI: | 10.1093/rof/rfaa015 |
| URL الوصول: | https://explore.openaire.eu/search/publication?articleId=doi_________::83679c769630b93a17528d075c102aa4 https://doi.org/10.1093/rof/rfaa015 |
| Rights: | OPEN |
| رقم الانضمام: | edsair.doi...........83679c769630b93a17528d075c102aa4 |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 1573692X 15723097 |
|---|---|
| DOI: | 10.1093/rof/rfaa015 |