Financial Management · 1999 · 92 citations · 0 references
Economic ForecastingFinancial EconomicsBehavioral FinanceAccountingNew EvidenceEconometricsOptimistic Earnings ForecastsBusinessStock Market PredictionForecastingFinancial ForecastNew InformationFinanceSecurities Analysts
Securities analysts react optimistically to new information, underreacting to bad news and overreacting to good news. This evidence suggests that securities analysts might produce optimistic earnings forecasts in response to their economic incentives.