Uncertainty and Financial Analysts’ Optimism: A Comparison between High-Tech and Low-Tech European Firms

نویسندگان

چکیده

This study investigates the impact of information uncertainty on analysts’ earnings forecasts for a sample European companies from 2010 to 2019. We argue that representativeness, anchoring and adjustment, leniency biases jointly influence lead optimism. suggest boosts optimism as behavioral increase in situations low predictability. test through association between forecast errors and, separately, two modifications (forecast revision change) when these are upwards downwards. To examine effect, we implement descriptive regression analyses subsamples high-tech low-tech firms. The evidence indicates analysts optimistic, they overreact positive prediction underreact negative modifications. is more significant firms increases considerably with horizon. For robustness, utilize dispersion second proxy uncertainty, obtain comparable results.

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ژورنال

عنوان ژورنال: Sustainability

سال: 2023

ISSN: ['2071-1050']

DOI: https://doi.org/10.3390/su15032270