differential 'profits management.' The paper discusses implications of the results for studies of analysts forecast bias, earnings … error is likely to be negative and extreme (i.e., a measured optimistic bias). Brown (1997 Financial Analysts Journal) shows … that the optimistic bias in analyst earnings forecasts has been mitigated over time, and that it is less pronounced for …

with the magnitude of the bias in analysts' earnings forecasts. We posit that there is higher demand for non …

This paper provides evidence of confirmation bias by sell-side analysts in their earnings forecasts. We show that … analysts tend to put higher weight on public information when the current forecast consensus is more consistent with their … earlier, or facing less dispersion in peer forecasts, tend to be more subject to confirmation bias, consistent with some of …