Herding Behavior among Financial Analysts: a literature review
AbstractAnalysts' forecasts are often used as an information source by other investors, and therefore deviations from optimal forecasts are troublesome. Herding, which refers to imitation behavior as a consequence of individual considerations, can lead to such suboptimal forecasts and is therefore widely studied. In this paper we provide a concise literature review of herding behavior among financial analysts. We discuss the concept of herding and review its occurrence & consequences, as well as its motives and determinants. We conclude with some suggestions for further research.
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Bibliographic InfoPaper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2010/39.
Length: 14 page
Date of creation: Nov 2010
Date of revision:
Financial analysts; herding behavior; earnings forecasts;
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