Herding Behavior among Financial Analysts: a literature review
Analysts' 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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