before the actual earnings announcement. The second one is the optimistic bias channel. The optimistic bias channel means … that the stock is overpriced if the investors do not correct the analysts' bias. The self-selection is negatively … correlated with the stock return through the optimistic bias channel as more self-selection means more optimistic bias as low …

Measuring the information environment of firms using analyst (price) forecast bias and forecast dispersion before … initial returns of initial public offerings (IPOs). We find the smaller the analyst forecast bias/dispersion, the lower the …