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

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › 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 - 1 Dec 2014

Scopus Subject Areas

Accounting

User-Defined Keywords

Behavioral finance
Confidence
Meta-cognition
Sell-side analysts

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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.",

keywords = "Behavioral finance, Confidence, Meta-cognition, Sell-side analysts",

author = "Durand, {Robert B.} and Manapon Limkriangkrai and Lucia Fung",

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AU - Durand, Robert B.

AU - Limkriangkrai, Manapon

AU - Fung, Lucia

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N2 - 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.

AB - 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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KW - Confidence

KW - Meta-cognition

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JO - Journal of Contemporary Accounting and Economics

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The behavioral basis of sell-side analysts' herding

Abstract

Scopus Subject Areas

User-Defined Keywords

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