The behavioral basis of sell-side analysts' herding

Robert B Durand; Manapon Limkriangkrai; Lucia Fung

doi:10.1016/j.jcae.2014.08.001

The behavioral basis of sell-side analysts' herding

Robert B Durand, Manapon Limkriangkrai, Lucia Fung

Research output: Contribution to journal › Article › Research › peer-review

6 Citations (Scopus)

Abstract

Sell-side analysts move away from the prevailing consensus as their confidence increases. As their confidence falls, they herd toward the prevailing consensus. Confidence as well as the associated propensity to move away from the herd increase as firms become more difficult to analyze. This behavior is consistent with such analysts having lower meta-cognitive skills.

Original language	English
Pages (from-to)	176 - 190
Number of pages	15
Journal	Journal of Contemporary Accounting and Economics
Volume	10
Issue number	3
DOIs	https://doi.org/10.1016/j.jcae.2014.08.001
Publication status	Published - 2014

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10.1016/j.jcae.2014.08.001

Cite this

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title = "The behavioral basis of sell-side analysts' herding",

abstract = "Sell-side analysts move away from the prevailing consensus as their confidence increases. As their confidence falls, they herd toward the prevailing consensus. Confidence as well as the associated propensity to move away from the herd increase as firms become more difficult to analyze. This behavior is consistent with such analysts having lower meta-cognitive skills.",

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