Using a value-weighted rather than an equally weighted regression, Easton and Sommers (2007) show that the upward bias … significant. In this paper, we argue that any estimation of a forward risk premium implies a joint test of analysts' optimism and … that the impact of any bias attributable to analysts' forecasts can be reduced to a statistically insignificant 0 …

We show that understanding the role of analysts' forecast bias is central to discovering the behavior that causes some … dispersion contribute significantly to many important anomalies. We first explain how forecast bias produces significant negative … stocks to have high analyst forecast dispersion. This finding is important because stocks with high analyst forecast …

of forecast bias and (ii) investors' limited capability to adjust to this bias. We assume that the presence of a bias is … skills, all the more so the larger the uncertainty about the forecast bias … present a model in which forecast accuracy and timing are affected by information uncertainty stemming from (i) the presence …

' forecast bias. Based on the theoretical literature on sell-side analysts, I argue that forecast bias is correlated to investors …