Terrorist Attacks, Analyst Sentiment, and Earnings Forecasts

We examine whether exogenous and extremely negative events, such as terrorist attacks mass shootings, influence the sentiment forecasts of sell-side equity analysts. find that analysts who are local to these issue relatively more pessimistic than consensus forecast. This effect is stronger when analyst closer event located in a low-crime region. Impacted also around one- two-year anniversaries attacks. Collectively, findings indicate exposure extreme events affects behavior information intermediaries dissemination process financial markets. paper was accepted by David Simchi-Levi, finance.