Article ID Journal Published Year Pages File Type
7355668 International Review of Financial Analysis 2018 16 Pages PDF
Abstract
This study examines whether aggregate uncertainty affects the herding tendency among analysts. The results show that, in addition to market risk and firm-level uncertainty, analysts' tendency to herd increases with aggregate uncertainty. These results are robust with respect to excluding common and earnings information, as well as using different measurements of consensus recommendation, risk and aggregate uncertainty. Herding among analysts is stronger when downgrading a stock. The tendency of herding clearly increases in tandem with aggregate uncertainty. The results are more prevalent for small stocks and inexperienced analysts.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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