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 …

is mainly strategic or whether it also contains an element of cognitive bias. Despite the fact that forecast errors lack … stock returns, our new tests based on selection bias (SB1 and SB2), in conjunction with an analysis of abnormal trading … volume, confirm the presence of both cognitive bias and strategic behaviour in analyst forecasts. This shows that, although …

conduct panel data regressions. We show that the analysts' optimistic bias declined significantly after CSA rules, which …

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 …

This paper quantifies the amount of noise and bias in analysts' forecast of corporate earnings at various horizons. We … next decompose the relative accuracy of these forecasts into three components: (i) noise, (ii) bias and (iii) analysts … both noise and bias are increase linearly. We then show most existing models lack a mechanism to account for these facts …

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