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EXPERTS' EARNING FORECASTS: BIAS, HERDING AND GOSSAMER INFORMATION

EXPERTS' EARNING FORECASTS: BIAS, HERDING AND GOSSAMER INFORMATION

We study the statistics of earning forecasts of US, EU, UK and JP stocks during the period 1987–2004. We confirm, on this large data set, that financial analysts are on average over-optimistic and show a pronounced herding behavior. These effects are time dependent, and were particularly strong in the early …