Cen, Ling; Hilary, Gilles; Wei, K. C. John - In: Journal of Financial and Quantitative Analysis 48 (2013) 01, pp. 47-76
We test the implications of anchoring bias associated with forecast earnings per share (FEPS) for forecast errors, earnings surprises, stock returns, and stock splits. We find that analysts make optimistic (pessimistic) forecasts when a firm’s FEPS is lower (higher) than the industry median....
