We investigate bias in the Federal Reserve's stress test disclosures for the Comprehensive Capital Analysis and Reviews (CCAR) between 2012 and 2017. Using the market response to the report, we develop and implement a model of biased disclosure that incorporates a regulator's trade-off between...

We present evidence of first impression bias among finance professionals in the field. Equity analysts' forecasts, target prices, and recommendations suffer from first impression bias. If a firm performs particularly well (poorly) in the year before an analyst follows it, that analyst tends to...