Economic policy uncertainty (EPU) has important implications for crude oil market. To explore the implications, this paper investigates the impact of EPU on the crude oil return volatility and which EPU index has the most forecasting power in crude oil market. To this end, we employ the...

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 previous forecasts. Our results further suggest that the...

Economic policy uncertainty (EPU) has important implications for crude oil market. To explore the implications, this paper investigates the impact of EPU on the crude oil return volatility and which EPU index has the most forecasting power in crude oil market. To this end, we employ the...

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 previous forecasts. We further find that analysts with...

Psychology research on contrast effects suggests that the information from a previous decision may be compared to the information provided for the current judgement task. We document a new stylized fact that an analyst’s current earnings forecast of one firm tends to bias against her latest...

In the past several decades, the world’s economy has become increasingly globalized. On the other hand, there are also ideas advocating the practice of “buy local”, by which people buy locally produced goods and services rather than those produced farther away. In this paper, we establish...

This paper examines whether the Shanghai-Hong Kong Stock Connect program drivesmarket comovement between Shanghai and Hong Kong. We distinguish financial liberalization induced market comovement from that induced by other factors through comparing time-varying market correlations of...