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

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 …

mechanism explains approximately 60% of the autocorrelation in analysts' forecast errors. The remainder stems from the cross …-sectional variation in mean forecast errors and in analysts' estimation errors of the persistence of earnings growth shocks. Consistent … reduces, but does not eliminate, the auto- correlation of forecast errors as firms age. Other potential explanations for the …

(integrated) production of information. Nonetheless, this paper documents significant stock return and forecast revision …

behavioral bias. In the second stage analysts can adjust their earnings forecast in line with their strategic incentives. The … inflating their forecast. In their last revision, they become pessimistic and strategically deflate their earnings forecast …

the first stage, financial analysts perform a fundamental analysis in which they are prone to a behavioral bias. In the … forecast. In their last revision, they become pessimistic and strategically deflate their earnings forecast, which creates the …

behavioral bias. In the second stage analysts can adjust their earnings forecast in line with their strategic incentives. The … inflating their forecast. In their last revision, they become pessimistic and strategically deflate their earnings forecast …