The performance of analysts’ forecasts has attracted increasing attention in recent years. However, as yet, no empirical study has investigated the nexus between the analyst forecast dispersion (AFD) and excess returns surrounding stock market crashes in any depth. This paper attempts to fill...

We examine the relation between analysts’ consensus recommendation changes and future stock price crash risk in recessionary economic conditions and normal conditions. We find that analysts’ downgrades are followed by a higher stock price crash risk in normal macroeconomic conditions, but a...