This study examines the influence of investor sentiment on managers' discretionary disclosure of ldquo;pro formardquo; (adjusted) earnings metrics in earnings press releases. We find that managers' propensity to disclose an adjusted earnings metric increases with the level of investor sentiment...

This paper documents the tendency of mutual fund managers to follow analyst recommendation revisions when they trade stocks, and the impact of analyst revisioninduced mutual fund herds on stock prices. We find that mutual fund herds follow consensus revisions in analyst recommendations,...

This study documents evidence consistent with herding in voluntary disclosure decisions in the context of capital expenditure forecasts and investigates two possible reasons for this behavior. Theories of rational herds suggest that herding in disclosure decisions may be due to either (1) the...

This paper documents that mutual funds ldquo;herdrdquo; (trade together) into stocks with consensus sell-side analyst upgrades, and herd out of stocks with consensus downgrades. This influence of analyst revisions on fund herding is stronger for downgrades, and among managers with greater career...