Fool's Gold: Social Proof in the Initiation and Abandonment of Coverage by Wall Street Analysts

By Hayagreeva Rao, Henrich R. Greve, Gerald F. Davis. 2001

591 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/0a1a169200e3fca06c5243bc8d396e4afa7f2be0

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

EVALUATIVE SCHEMAS AND THE ATTENTION OF CRITICS IN THE U.S. FILM INDUSTRY. (2005, background): “For example, Rao et al. (2001) suggest that environmental uncertainty may push securities analysts to rely on social proof (i.e., the coverage of their peers) as a heuristic for judging how to allocate attention.”
Organizations Behaving Badly: When Are Discreditable Actions Likely to Damage Organizational Reputation? (2010, background): “To the extent that stakeholders are actively seeking information, the perspective of the media may reduce their uncertainty about their own judgements and convince them that those with a fuller knowledge of the facts are correct (Bikhchandani et al., 1992; Rao et al., 2001).”
Being good or being known: An empirical examination of the dimensions, antecedents, and consequences of organizational reputation (2005, background): “This is because under conditions of uncertainty individuals look to the opinions and choices of others to make up their own minds (Rao, Davis, & Ward, 2000; Rao et al., 2001).”
Reframing the Decision-Makers’ Dilemma: Towards a Social Context Model of Creative Idea Recognition (2017, background): “Research confirms that social approval is “most influential when decision-makers are uncertain about the value of a course of action, and when able to observe the actions of similar others” (Rao et al, 2001: 504).”
Media Legitimation Effects in the Market for Initial Public Offerings (2003, methodology): “…of uncertainty, when individuals presumed to have very precise judgments, such as opinion leaders, express their judgments, thereby enabling others to deal with uncertainty through imitation, rather than by making their own private assessments (Bikhchandani et al., 1992; Rao et al., 2001).”
Managing the Unknowable (2015, background): “Venture capitalists will also follow other investors (e.g., Rao, Greve, and Davis, 2001) and are swayed by the quality of the entrepreneurs’ storytelling (Martens, Jennings, and Jennings, 2007), which facilitates venture capitalists’ sensemaking about the investment opportunity (Navis and Glynn,…”
Executive Personality, Capability Cues, and Risk Taking (2011, background): “Praise can even be thought of as a form of ‘‘social proof,’’ validating one’s efficacy in a way that more sterile indicators of capability cannot (Rao, Greve, and Davis, 2001).”
The Role of Accelerator Designs in Mitigating Bounded Rationality in New Ventures (2018, background): “…of social proof—one that builds when the opinions of many others conform with each other to reduce confidence in one’s own opinion (Cialdini, 1993; Rao, Greve, and Davis, 2001).6 Moreover, as individuals tend to overweight recent information (Tversky and Kahneman, 1974), the time compression of…”
Structural Incoherence and Stock Market Activity (2004, background): “…light of the conflict-of-interest scandals associated with the recent stock market bubble, is described in great detail elsewhere (e.g., Burk 1988; Hayward and Boeker 1998; Lin and McNichols 1998; Phillips and Zuckerman 2001; Rao, Greve, and Davis 2001; Schipper 1991; Zuckerman 1997, 1999, 2000).”
Standing out from the crowd: the visibility-enhancing effects of IPO-related signals on alliance formation by entrepreneurial firms (2007, background): “Analysts are important information intermediaries (Rao et al., 2001; Zuckerman, 1999), and as such their coverage of a newly public firm can be helpful in legitimating the organization and allowing it to attract resources (Krigman et al., 2001).”