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 …

-year forecast error. Our findings in the Saudi financial market reveal a tendency for overreaction to positive prior-year earnings … change (good performance) and positive prior-year forecast errors (good surprise). Conversely, there is an underreaction to … the negative prior-year earnings change (bad performance) and negative prior-year forecast error (bad surprise). Notably …